Correlation Between Lazard and Blackstone
Can any of the company-specific risk be diversified away by investing in both Lazard and Blackstone 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 Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard and Blackstone Group, you can compare the effects of market volatilities on Lazard and Blackstone 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 Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard and Blackstone.
Diversification Opportunities for Lazard and Blackstone
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lazard and Blackstone is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Lazard and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group 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 Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of Lazard i.e., Lazard and Blackstone go up and down completely randomly.
Pair Corralation between Lazard and Blackstone
Considering the 90-day investment horizon Lazard is expected to generate 1.25 times more return on investment than Blackstone. However, Lazard is 1.25 times more volatile than Blackstone Group. It trades about 0.2 of its potential returns per unit of risk. Blackstone Group is currently generating about -0.2 per unit of risk. If you would invest 5,067 in Lazard on November 18, 2024 and sell it today you would earn a total of 457.00 from holding Lazard or generate 9.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard vs. Blackstone Group
Performance |
| Timeline |
| Lazard |
| Blackstone Group |
Lazard and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard and Blackstone
The main advantage of trading using opposite Lazard and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard position performs unexpectedly, Blackstone 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 Blackstone will offset losses from the drop in Blackstone's long position.| Lazard vs. PJT Partners | Lazard vs. Moelis Co | Lazard vs. Houlihan Lokey | Lazard vs. Piper Sandler Companies |
| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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