Correlation Between GM and Lazard International
Can any of the company-specific risk be diversified away by investing in both GM and Lazard International 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 GM and Lazard International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Lazard International Equity, you can compare the effects of market volatilities on GM and Lazard International 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 GM with a short position of Lazard International. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Lazard International.
Diversification Opportunities for GM and Lazard International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and Lazard is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Lazard International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard International and GM 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 General Motors are associated (or correlated) with Lazard International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard International has no effect on the direction of GM i.e., GM and Lazard International go up and down completely randomly.
Pair Corralation between GM and Lazard International
If you would invest 0.00 in Lazard International Equity on January 5, 2025 and sell it today you would earn a total of 0.00 from holding Lazard International Equity or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
General Motors vs. Lazard International Equity
Performance |
| Timeline |
| General Motors |
| Lazard International |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
GM and Lazard International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Lazard International
The main advantage of trading using opposite GM and Lazard International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Lazard International 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 International will offset losses from the drop in Lazard International's long position.The idea behind General Motors and Lazard International Equity pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Lazard International vs. Mirova Global Green | Lazard International vs. Goldman Sachs Global | Lazard International vs. Dws Global Macro | Lazard International vs. Tax Managed Large 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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