Correlation Between Lazard Global and Lazard Us
Can any of the company-specific risk be diversified away by investing in both Lazard Global 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 Lazard Global and Lazard Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard Global Equity and Lazard Small Mid Cap, you can compare the effects of market volatilities on Lazard Global 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 Lazard Global with a short position of Lazard Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Global and Lazard Us.
Diversification Opportunities for Lazard Global and Lazard Us
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lazard and Lazard is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Global Equity and Lazard Small Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Small Mid 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 Equity 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 Small Mid has no effect on the direction of Lazard Global i.e., Lazard Global and Lazard Us go up and down completely randomly.
Pair Corralation between Lazard Global and Lazard Us
Assuming the 90 days horizon Lazard Global Equity is expected to generate 0.56 times more return on investment than Lazard Us. However, Lazard Global Equity is 1.8 times less risky than Lazard Us. It trades about 0.07 of its potential returns per unit of risk. Lazard Small Mid Cap is currently generating about 0.0 per unit of risk. If you would invest 1,598 in Lazard Global Equity on November 28, 2024 and sell it today you would earn a total of 289.00 from holding Lazard Global Equity or generate 18.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard Global Equity vs. Lazard Small Mid Cap
Performance |
| Timeline |
| Lazard Global Equity |
| Lazard Small Mid |
Lazard Global and Lazard Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Global and Lazard Us
The main advantage of trading using opposite Lazard Global and Lazard Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Global 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.| Lazard Global vs. Western Asset Total | Lazard Global vs. Prudential Jennison Equity | Lazard Global vs. Oppenheimer Developing Markets |
| Lazard Us vs. Lazard Small Mid Cap | Lazard Us vs. Lazard International Equity | Lazard Us vs. Lazard International Small | Lazard Us vs. Loomis Sayles Small |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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