Correlation Between Lazard and PJT Partners
Can any of the company-specific risk be diversified away by investing in both Lazard and PJT Partners 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 PJT Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard and PJT Partners, you can compare the effects of market volatilities on Lazard and PJT Partners 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 PJT Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard and PJT Partners.
Diversification Opportunities for Lazard and PJT Partners
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lazard and PJT is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Lazard and PJT Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PJT Partners 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 PJT Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PJT Partners has no effect on the direction of Lazard i.e., Lazard and PJT Partners go up and down completely randomly.
Pair Corralation between Lazard and PJT Partners
Considering the 90-day investment horizon Lazard is expected to generate 1.08 times less return on investment than PJT Partners. In addition to that, Lazard is 1.05 times more volatile than PJT Partners. It trades about 0.21 of its total potential returns per unit of risk. PJT Partners is currently generating about 0.24 per unit of volatility. If you would invest 14,108 in PJT Partners on August 28, 2024 and sell it today you would earn a total of 2,577 from holding PJT Partners or generate 18.27% 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. PJT Partners
Performance |
| Timeline |
| Lazard |
| PJT Partners |
Lazard and PJT Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard and PJT Partners
The main advantage of trading using opposite Lazard and PJT Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard position performs unexpectedly, PJT Partners 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 PJT Partners will offset losses from the drop in PJT Partners' long position.| Lazard vs. PJT Partners | Lazard vs. Moelis Co | Lazard vs. Houlihan Lokey | Lazard vs. Piper Sandler Companies |
| PJT Partners vs. Visa Class A | PJT Partners vs. Diamond Hill Investment | PJT Partners vs. Distoken Acquisition | PJT Partners vs. AllianceBernstein Holding LP |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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