Correlation Between Lazard and Magic Empire
Can any of the company-specific risk be diversified away by investing in both Lazard and Magic Empire 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 Magic Empire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard and Magic Empire Global, you can compare the effects of market volatilities on Lazard and Magic Empire 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 Magic Empire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard and Magic Empire.
Diversification Opportunities for Lazard and Magic Empire
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lazard and Magic is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Lazard and Magic Empire Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magic Empire Global 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 Magic Empire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magic Empire Global has no effect on the direction of Lazard i.e., Lazard and Magic Empire go up and down completely randomly.
Pair Corralation between Lazard and Magic Empire
Considering the 90-day investment horizon Lazard is expected to generate 0.87 times more return on investment than Magic Empire. However, Lazard is 1.14 times less risky than Magic Empire. It trades about 0.16 of its potential returns per unit of risk. Magic Empire Global is currently generating about 0.06 per unit of risk. If you would invest 5,068 in Lazard on August 24, 2024 and sell it today you would earn a total of 644.00 from holding Lazard or generate 12.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard vs. Magic Empire Global
Performance |
| Timeline |
| Lazard |
| Magic Empire Global |
Lazard and Magic Empire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard and Magic Empire
The main advantage of trading using opposite Lazard and Magic Empire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard position performs unexpectedly, Magic Empire 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 Magic Empire will offset losses from the drop in Magic Empire's long position.| Lazard vs. PJT Partners | Lazard vs. Moelis Co | Lazard vs. Houlihan Lokey | Lazard vs. Piper Sandler Companies |
| Magic Empire vs. Netcapital | Magic Empire vs. Applied Blockchain | Magic Empire vs. Zhong Yang Financial | Magic Empire vs. Mercurity Fintech Holding |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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