Correlation Between Lazard Global and Lazard Capital
Can any of the company-specific risk be diversified away by investing in both Lazard Global and Lazard Capital 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 Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard Global Listed and Lazard Capital Allocator, you can compare the effects of market volatilities on Lazard Global and Lazard Capital 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 Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Global and Lazard Capital.
Diversification Opportunities for Lazard Global and Lazard Capital
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lazard and Lazard is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Global Listed and Lazard Capital Allocator in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Capital Allocator 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 Listed are associated (or correlated) with Lazard Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Capital Allocator has no effect on the direction of Lazard Global i.e., Lazard Global and Lazard Capital go up and down completely randomly.
Pair Corralation between Lazard Global and Lazard Capital
Assuming the 90 days horizon Lazard Global is expected to generate 1.49 times less return on investment than Lazard Capital. But when comparing it to its historical volatility, Lazard Global Listed is 1.03 times less risky than Lazard Capital. It trades about 0.05 of its potential returns per unit of risk. Lazard Capital Allocator is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 977.00 in Lazard Capital Allocator on September 12, 2024 and sell it today you would earn a total of 157.00 from holding Lazard Capital Allocator or generate 16.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard Global Listed vs. Lazard Capital Allocator
Performance |
| Timeline |
| Lazard Global Listed |
| Lazard Capital Allocator |
Lazard Global and Lazard Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Global and Lazard Capital
The main advantage of trading using opposite Lazard Global and Lazard Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Global position performs unexpectedly, Lazard Capital 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 Capital will offset losses from the drop in Lazard Capital's long position.| Lazard Global vs. Lazard Global Listed | Lazard Global vs. Wcm Focused International | Lazard Global vs. Tortoise Mlp Pipeline | Lazard Global vs. Blkrk Lc Cr |
| Lazard Capital vs. Lazard Global Listed | Lazard Capital vs. Lazard Global Listed | Lazard Capital vs. Lazard International Pounders | Lazard Capital vs. Lazard Global Dynamic |
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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