Correlation Between Lazard Capital and Lazard Equity
Can any of the company-specific risk be diversified away by investing in both Lazard Capital and Lazard Equity 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 Equity 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 Equity Franchise, you can compare the effects of market volatilities on Lazard Capital and Lazard Equity 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 Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Capital and Lazard Equity.
Diversification Opportunities for Lazard Capital and Lazard Equity
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lazard and Lazard is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Capital Allocator and Lazard Equity Franchise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Equity Franchise 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 Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Equity Franchise has no effect on the direction of Lazard Capital i.e., Lazard Capital and Lazard Equity go up and down completely randomly.
Pair Corralation between Lazard Capital and Lazard Equity
Assuming the 90 days horizon Lazard Capital Allocator is expected to generate 0.71 times more return on investment than Lazard Equity. However, Lazard Capital Allocator is 1.41 times less risky than Lazard Equity. It trades about 0.34 of its potential returns per unit of risk. Lazard Equity Franchise is currently generating about 0.03 per unit of risk. If you would invest 1,072 in Lazard Capital Allocator on September 2, 2024 and sell it today you would earn a total of 48.00 from holding Lazard Capital Allocator or generate 4.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard Capital Allocator vs. Lazard Equity Franchise
Performance |
| Timeline |
| Lazard Capital Allocator |
| Lazard Equity Franchise |
Lazard Capital and Lazard Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Capital and Lazard Equity
The main advantage of trading using opposite Lazard Capital and Lazard Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Capital position performs unexpectedly, Lazard Equity 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 Equity will offset losses from the drop in Lazard Equity's long position.| Lazard Capital vs. Lazard Capital Allocator | Lazard Capital vs. Cullen International High | Lazard Capital vs. Cullen High Dividend | Lazard Capital vs. Lazard International Equity |
| Lazard Equity vs. Delaware Healthcare Fund | Lazard Equity vs. Deutsche Health And | Lazard Equity vs. Baron Health Care | Lazard Equity vs. Eventide Healthcare Life |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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