Correlation Between Lazard and Jefferies Financial
Can any of the company-specific risk be diversified away by investing in both Lazard and Jefferies Financial 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 Jefferies Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard and Jefferies Financial Group, you can compare the effects of market volatilities on Lazard and Jefferies Financial 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 Jefferies Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard and Jefferies Financial.
Diversification Opportunities for Lazard and Jefferies Financial
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lazard and Jefferies is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Lazard and Jefferies Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jefferies Financial 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 Jefferies Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jefferies Financial has no effect on the direction of Lazard i.e., Lazard and Jefferies Financial go up and down completely randomly.
Pair Corralation between Lazard and Jefferies Financial
Considering the 90-day investment horizon Lazard is expected to generate 1.47 times less return on investment than Jefferies Financial. In addition to that, Lazard is 1.13 times more volatile than Jefferies Financial Group. It trades about 0.07 of its total potential returns per unit of risk. Jefferies Financial Group is currently generating about 0.12 per unit of volatility. If you would invest 2,952 in Jefferies Financial Group on August 26, 2024 and sell it today you would earn a total of 4,906 from holding Jefferies Financial Group or generate 166.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard vs. Jefferies Financial Group
Performance |
| Timeline |
| Lazard |
| Jefferies Financial |
Lazard and Jefferies Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard and Jefferies Financial
The main advantage of trading using opposite Lazard and Jefferies Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard position performs unexpectedly, Jefferies Financial 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 Jefferies Financial will offset losses from the drop in Jefferies Financial's long position.| Lazard vs. PJT Partners | Lazard vs. Moelis Co | Lazard vs. Houlihan Lokey | Lazard vs. Piper Sandler Companies |
| Jefferies Financial vs. Lazard | Jefferies Financial vs. PJT Partners | Jefferies Financial vs. Moelis Co | Jefferies Financial vs. Houlihan Lokey |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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