Correlation Between Credit Suisse and Lazard Us
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Lazard Us 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 Credit Suisse and Lazard Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Suisse Modity and Lazard Equity Centrated, you can compare the effects of market volatilities on Credit Suisse and Lazard Us 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 Credit Suisse with a short position of Lazard Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Lazard Us.
Diversification Opportunities for Credit Suisse and Lazard Us
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Credit and Lazard is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Modity and Lazard Equity Centrated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Equity Centrated and Credit Suisse 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 Credit Suisse Modity are associated (or correlated) with Lazard Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Equity Centrated has no effect on the direction of Credit Suisse i.e., Credit Suisse and Lazard Us go up and down completely randomly.
Pair Corralation between Credit Suisse and Lazard Us
Assuming the 90 days horizon Credit Suisse Modity is expected to generate 0.69 times more return on investment than Lazard Us. However, Credit Suisse Modity is 1.45 times less risky than Lazard Us. It trades about -0.02 of its potential returns per unit of risk. Lazard Equity Centrated is currently generating about -0.05 per unit of risk. If you would invest 2,249 in Credit Suisse Modity on August 30, 2024 and sell it today you would lose (7.00) from holding Credit Suisse Modity or give up 0.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Suisse Modity vs. Lazard Equity Centrated
Performance |
| Timeline |
| Credit Suisse Modity |
| Lazard Equity Centrated |
Credit Suisse and Lazard Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Lazard Us
The main advantage of trading using opposite Credit Suisse and Lazard Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Lazard Us 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 Us will offset losses from the drop in Lazard Us' long position.| Credit Suisse vs. Putnam Convertible Incm Gwth | Credit Suisse vs. Advent Claymore Convertible | Credit Suisse vs. Allianzgi Convertible Income | Credit Suisse vs. Fidelity Sai Convertible |
| Lazard Us vs. Vanguard Total Stock | Lazard Us vs. Vanguard 500 Index | Lazard Us vs. Vanguard Total Stock | Lazard Us vs. Vanguard Total Stock |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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