Correlation Between Legg Mason and Lazard Strategic
Can any of the company-specific risk be diversified away by investing in both Legg Mason and Lazard Strategic 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 Legg Mason and Lazard Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Legg Mason Global and Lazard Strategic Equity, you can compare the effects of market volatilities on Legg Mason and Lazard Strategic 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 Legg Mason with a short position of Lazard Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and Lazard Strategic.
Diversification Opportunities for Legg Mason and Lazard Strategic
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Legg and Lazard is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason Global and Lazard Strategic Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Strategic Equity and Legg Mason 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 Legg Mason Global are associated (or correlated) with Lazard Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Strategic Equity has no effect on the direction of Legg Mason i.e., Legg Mason and Lazard Strategic go up and down completely randomly.
Pair Corralation between Legg Mason and Lazard Strategic
If you would invest 0.00 in Lazard Strategic Equity on October 17, 2024 and sell it today you would earn a total of 0.00 from holding Lazard Strategic Equity or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Legg Mason Global vs. Lazard Strategic Equity
Performance |
| Timeline |
| Legg Mason Global |
| Lazard Strategic Equity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Legg Mason and Lazard Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legg Mason and Lazard Strategic
The main advantage of trading using opposite Legg Mason and Lazard Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason position performs unexpectedly, Lazard Strategic 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 Strategic will offset losses from the drop in Lazard Strategic's long position.| Legg Mason vs. Jennison Natural Resources | Legg Mason vs. Adams Natural Resources | Legg Mason vs. Blackrock All Cap Energy | Legg Mason vs. Short Oil Gas |
| Lazard Strategic vs. Queens Road Small | Lazard Strategic vs. Great West Loomis Sayles | Lazard Strategic vs. Heartland Value Plus | Lazard Strategic vs. Small Cap Value |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |