Correlation Between Lazard Capital and Lazard Global
Can any of the company-specific risk be diversified away by investing in both Lazard Capital and Lazard Global 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 Capital and Lazard Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard Capital Allocator and Lazard Global Listed, you can compare the effects of market volatilities on Lazard Capital and Lazard Global 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 Capital with a short position of Lazard Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Capital and Lazard Global.
Diversification Opportunities for Lazard Capital and Lazard Global
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lazard and Lazard is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Capital Allocator and Lazard Global Listed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Global Listed and Lazard Capital 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 Capital Allocator are associated (or correlated) with Lazard Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Global Listed has no effect on the direction of Lazard Capital i.e., Lazard Capital and Lazard Global go up and down completely randomly.
Pair Corralation between Lazard Capital and Lazard Global
Assuming the 90 days horizon Lazard Capital is expected to generate 1.23 times less return on investment than Lazard Global. In addition to that, Lazard Capital is 1.21 times more volatile than Lazard Global Listed. It trades about 0.07 of its total potential returns per unit of risk. Lazard Global Listed is currently generating about 0.1 per unit of volatility. If you would invest 1,476 in Lazard Global Listed on September 13, 2024 and sell it today you would earn a total of 121.00 from holding Lazard Global Listed or generate 8.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard Capital Allocator vs. Lazard Global Listed
Performance |
| Timeline |
| Lazard Capital Allocator |
| Lazard Global Listed |
Lazard Capital and Lazard Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Capital and Lazard Global
The main advantage of trading using opposite Lazard Capital and Lazard Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Capital position performs unexpectedly, Lazard Global 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 Lazard Global will offset losses from the drop in Lazard Global's long position.| Lazard Capital vs. Touchstone International Equity | Lazard Capital vs. Scharf Fund Retail | Lazard Capital vs. Cutler Equity | Lazard Capital vs. Ms Global Fixed |
| Lazard Global vs. International Fund International | Lazard Global vs. Lazard Global Listed | Lazard Global vs. Large Cap Growth | Lazard Global vs. The Value Fund |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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