Correlation Between Cullen High and Lazard Global
Can any of the company-specific risk be diversified away by investing in both Cullen High and Lazard Global at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cullen High and Lazard Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cullen High Dividend and Lazard Global Listed, you can compare the effects of market volatilities on Cullen High and Lazard Global and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Cullen High with a short position of Lazard Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullen High and Lazard Global.
Diversification Opportunities for Cullen High and Lazard Global
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cullen and Lazard is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Cullen High Dividend and Lazard Global Listed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Global Listed and Cullen High is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Cullen High Dividend are associated (or correlated) with Lazard Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Global Listed has no effect on the direction of Cullen High i.e., Cullen High and Lazard Global go up and down completely randomly.
Pair Corralation between Cullen High and Lazard Global
Assuming the 90 days horizon Cullen High is expected to generate 1.39 times less return on investment than Lazard Global. In addition to that, Cullen High is 1.0 times more volatile than Lazard Global Listed. It trades about 0.17 of its total potential returns per unit of risk. Lazard Global Listed is currently generating about 0.24 per unit of volatility. If you would invest 1,592 in Lazard Global Listed on September 1, 2024 and sell it today you would earn a total of 44.00 from holding Lazard Global Listed or generate 2.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cullen High Dividend vs. Lazard Global Listed
Performance |
| Timeline |
| Cullen High Dividend |
| Lazard Global Listed |
Cullen High and Lazard Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cullen High and Lazard Global
The main advantage of trading using opposite Cullen High and Lazard Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullen High position performs unexpectedly, Lazard Global can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lazard Global will offset losses from the drop in Lazard Global's long position.| Cullen High vs. The Value Fund | Cullen High vs. Lazard Global Listed | Cullen High vs. Lazard International Strategic | Cullen High vs. Tcw Relative Value |
| Lazard Global vs. International Fund International | Lazard Global vs. Large Cap Growth | Lazard Global vs. The Value Fund | Lazard Global vs. Parnassus Endeavor Fund |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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