Correlation Between Houlihan Lokey and Lazard
Can any of the company-specific risk be diversified away by investing in both Houlihan Lokey 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 Houlihan Lokey and Lazard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Houlihan Lokey and Lazard, you can compare the effects of market volatilities on Houlihan Lokey 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 Houlihan Lokey with a short position of Lazard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Houlihan Lokey and Lazard.
Diversification Opportunities for Houlihan Lokey and Lazard
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Houlihan and Lazard is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Houlihan Lokey and Lazard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard and Houlihan Lokey 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 Houlihan Lokey 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 Houlihan Lokey i.e., Houlihan Lokey and Lazard go up and down completely randomly.
Pair Corralation between Houlihan Lokey and Lazard
Considering the 90-day investment horizon Houlihan Lokey is expected to generate 1.24 times less return on investment than Lazard. But when comparing it to its historical volatility, Houlihan Lokey is 1.45 times less risky than Lazard. It trades about 0.17 of its potential returns per unit of risk. Lazard is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,762 in Lazard on August 24, 2024 and sell it today you would earn a total of 2,950 from holding Lazard or generate 106.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Houlihan Lokey vs. Lazard
Performance |
| Timeline |
| Houlihan Lokey |
| Lazard |
Houlihan Lokey and Lazard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Houlihan Lokey and Lazard
The main advantage of trading using opposite Houlihan Lokey and Lazard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Houlihan Lokey 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.| Houlihan Lokey vs. Lazard | Houlihan Lokey vs. PJT Partners | Houlihan Lokey vs. Moelis Co | Houlihan Lokey vs. Piper Sandler Companies |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |