Correlation Between Lazard Global and Lazard Sustainable
Can any of the company-specific risk be diversified away by investing in both Lazard Global and Lazard Sustainable 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 Sustainable 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 Sustainable Equity, you can compare the effects of market volatilities on Lazard Global and Lazard Sustainable 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 Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Global and Lazard Sustainable.
Diversification Opportunities for Lazard Global and Lazard Sustainable
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 Sustainable Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Sustainable 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 Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Sustainable Equity has no effect on the direction of Lazard Global i.e., Lazard Global and Lazard Sustainable go up and down completely randomly.
Pair Corralation between Lazard Global and Lazard Sustainable
Assuming the 90 days horizon Lazard Global is expected to generate 2.43 times less return on investment than Lazard Sustainable. But when comparing it to its historical volatility, Lazard Global Dynamic is 1.94 times less risky than Lazard Sustainable. It trades about 0.05 of its potential returns per unit of risk. Lazard Sustainable Equity is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,218 in Lazard Sustainable Equity on September 12, 2024 and sell it today you would earn a total of 324.00 from holding Lazard Sustainable Equity or generate 26.6% 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 Sustainable Equity
Performance |
| Timeline |
| Lazard Global Dynamic |
| Lazard Sustainable Equity |
Lazard Global and Lazard Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Global and Lazard Sustainable
The main advantage of trading using opposite Lazard Global and Lazard Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Global position performs unexpectedly, Lazard Sustainable 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 Sustainable will offset losses from the drop in Lazard Sustainable's long position.| Lazard Global vs. Capital Income Builder | Lazard Global vs. Capital Income Builder | Lazard Global vs. Capital Income Builder | Lazard Global vs. Capital Income Builder |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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