Correlation Between Lazard and Castellum
Can any of the company-specific risk be diversified away by investing in both Lazard and Castellum 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 Castellum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard and Castellum, you can compare the effects of market volatilities on Lazard and Castellum 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 Castellum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard and Castellum.
Diversification Opportunities for Lazard and Castellum
Good diversification
The 3 months correlation between Lazard and Castellum is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Lazard and Castellum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Castellum 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 Castellum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Castellum has no effect on the direction of Lazard i.e., Lazard and Castellum go up and down completely randomly.
Pair Corralation between Lazard and Castellum
Considering the 90-day investment horizon Lazard is expected to generate 0.55 times more return on investment than Castellum. However, Lazard is 1.83 times less risky than Castellum. It trades about 0.13 of its potential returns per unit of risk. Castellum is currently generating about 0.03 per unit of risk. If you would invest 4,995 in Lazard on August 30, 2024 and sell it today you would earn a total of 777.00 from holding Lazard or generate 15.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Lazard vs. Castellum
Performance |
| Timeline |
| Lazard |
| Castellum |
Lazard and Castellum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard and Castellum
The main advantage of trading using opposite Lazard and Castellum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard position performs unexpectedly, Castellum 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 Castellum will offset losses from the drop in Castellum's long position.| Lazard vs. PJT Partners | Lazard vs. Moelis Co | Lazard vs. Houlihan Lokey | Lazard vs. Piper Sandler Companies |
| Castellum vs. Flint Telecom Group | Castellum vs. Datametrex AI Limited | Castellum vs. TTEC Holdings | Castellum vs. Digatrade Financial Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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