Correlation Between Lazard and Raymond James
Can any of the company-specific risk be diversified away by investing in both Lazard and Raymond James 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 Raymond James into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard and Raymond James Financial, you can compare the effects of market volatilities on Lazard and Raymond James 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 Raymond James. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard and Raymond James.
Diversification Opportunities for Lazard and Raymond James
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lazard and Raymond is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Lazard and Raymond James Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raymond James 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 Raymond James. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raymond James Financial has no effect on the direction of Lazard i.e., Lazard and Raymond James go up and down completely randomly.
Pair Corralation between Lazard and Raymond James
Considering the 90-day investment horizon Lazard is expected to generate 1.56 times more return on investment than Raymond James. However, Lazard is 1.56 times more volatile than Raymond James Financial. It trades about 0.21 of its potential returns per unit of risk. Raymond James Financial is currently generating about 0.24 per unit of risk. If you would invest 5,123 in Lazard on August 28, 2024 and sell it today you would earn a total of 843.00 from holding Lazard or generate 16.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard vs. Raymond James Financial
Performance |
| Timeline |
| Lazard |
| Raymond James Financial |
Lazard and Raymond James Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard and Raymond James
The main advantage of trading using opposite Lazard and Raymond James positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard position performs unexpectedly, Raymond James 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 Raymond James will offset losses from the drop in Raymond James' long position.| Lazard vs. PJT Partners | Lazard vs. Moelis Co | Lazard vs. Houlihan Lokey | Lazard vs. Piper Sandler Companies |
| Raymond James vs. Tradeweb Markets | Raymond James vs. PJT Partners | Raymond James vs. Moelis Co | Raymond James vs. LPL Financial Holdings |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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