Correlation Between Lazard Global and Lazard Strategic
Can any of the company-specific risk be diversified away by investing in both Lazard Global and Lazard Strategic 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 Lazard Global and Lazard Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard Global Dynamic and Lazard Strategic Equity, you can compare the effects of market volatilities on Lazard Global and Lazard Strategic 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 Lazard Global with a short position of Lazard Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Global and Lazard Strategic.
Diversification Opportunities for Lazard Global and Lazard Strategic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lazard and Lazard is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Global Dynamic and Lazard Strategic Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Strategic Equity and Lazard Global 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 Lazard Global Dynamic are associated (or correlated) with Lazard Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Strategic Equity has no effect on the direction of Lazard Global i.e., Lazard Global and Lazard Strategic go up and down completely randomly.
Pair Corralation between Lazard Global and Lazard Strategic
Assuming the 90 days horizon Lazard Global is expected to generate 2.71 times less return on investment than Lazard Strategic. But when comparing it to its historical volatility, Lazard Global Dynamic is 1.97 times less risky than Lazard Strategic. It trades about 0.05 of its potential returns per unit of risk. Lazard Strategic Equity is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,279 in Lazard Strategic Equity on September 26, 2024 and sell it today you would earn a total of 405.00 from holding Lazard Strategic Equity or generate 31.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard Global Dynamic vs. Lazard Strategic Equity
Performance |
| Timeline |
| Lazard Global Dynamic |
| Lazard Strategic Equity |
Lazard Global and Lazard Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Global and Lazard Strategic
The main advantage of trading using opposite Lazard Global and Lazard Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Global position performs unexpectedly, Lazard Strategic 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 Strategic will offset losses from the drop in Lazard Strategic's long position.| Lazard Global vs. Lazard International Quality | Lazard Global vs. Lazard Small Mid Cap | Lazard Global vs. Lazard Equity Franchise | Lazard Global vs. Lazard Emerging Markets |
| Lazard Strategic vs. Lazard Global Dynamic | Lazard Strategic vs. Lazard Global Dynamic | Lazard Strategic vs. Lazard International Quality | Lazard Strategic vs. Lazard Small Mid Cap |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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