Correlation Between Lazard and Bitfarms
Can any of the company-specific risk be diversified away by investing in both Lazard and Bitfarms 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 and Bitfarms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard and Bitfarms, you can compare the effects of market volatilities on Lazard and Bitfarms 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 with a short position of Bitfarms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard and Bitfarms.
Diversification Opportunities for Lazard and Bitfarms
Weak diversification
The 3 months correlation between Lazard and Bitfarms is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Lazard and Bitfarms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitfarms and Lazard 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 are associated (or correlated) with Bitfarms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfarms has no effect on the direction of Lazard i.e., Lazard and Bitfarms go up and down completely randomly.
Pair Corralation between Lazard and Bitfarms
Considering the 90-day investment horizon Lazard is expected to generate 0.47 times more return on investment than Bitfarms. However, Lazard is 2.12 times less risky than Bitfarms. It trades about 0.21 of its potential returns per unit of risk. Bitfarms is currently generating about 0.01 per unit of risk. If you would invest 5,123 in Lazard on August 28, 2024 and sell it today you would earn a total of 843.00 from holding Lazard or generate 16.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard vs. Bitfarms
Performance |
| Timeline |
| Lazard |
| Bitfarms |
Lazard and Bitfarms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard and Bitfarms
The main advantage of trading using opposite Lazard and Bitfarms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard position performs unexpectedly, Bitfarms 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 Bitfarms will offset losses from the drop in Bitfarms' long position.| Lazard vs. PJT Partners | Lazard vs. Moelis Co | Lazard vs. Houlihan Lokey | Lazard vs. Piper Sandler Companies |
| Bitfarms vs. PowerUp Acquisition Corp | Bitfarms vs. Aurora Innovation | Bitfarms vs. HUMANA INC | Bitfarms vs. Aquagold International |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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