Correlation Between Greenhill and Lazard
Can any of the company-specific risk be diversified away by investing in both Greenhill and Lazard 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 Greenhill and Lazard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenhill Co and Lazard, you can compare the effects of market volatilities on Greenhill and Lazard 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 Greenhill with a short position of Lazard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenhill and Lazard.
Diversification Opportunities for Greenhill and Lazard
Poor diversification
The 3 months correlation between Greenhill and Lazard is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Greenhill Co and Lazard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard and Greenhill 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 Greenhill Co are associated (or correlated) with Lazard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard has no effect on the direction of Greenhill i.e., Greenhill and Lazard go up and down completely randomly.
Pair Corralation between Greenhill and Lazard
If you would invest 5,123 in Lazard on August 27, 2024 and sell it today you would earn a total of 647.00 from holding Lazard or generate 12.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Greenhill Co vs. Lazard
Performance |
| Timeline |
| Greenhill |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lazard |
Greenhill and Lazard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenhill and Lazard
The main advantage of trading using opposite Greenhill and Lazard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenhill position performs unexpectedly, Lazard 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 will offset losses from the drop in Lazard's long position.| Greenhill vs. Magic Empire Global | Greenhill vs. Applied Blockchain | Greenhill vs. Zhong Yang Financial | Greenhill vs. Netcapital |
| Lazard vs. PJT Partners | Lazard vs. Moelis Co | Lazard vs. Houlihan Lokey | Lazard vs. Piper Sandler Companies |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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