Correlation Between Lazard International and Lazard Global
Can any of the company-specific risk be diversified away by investing in both Lazard International 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 International 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 International Strategic and Lazard Global Listed, you can compare the effects of market volatilities on Lazard International 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 International with a short position of Lazard Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard International and Lazard Global.
Diversification Opportunities for Lazard International and Lazard Global
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lazard and Lazard is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Lazard International Strategic 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 International 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 International Strategic 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 International i.e., Lazard International and Lazard Global go up and down completely randomly.
Pair Corralation between Lazard International and Lazard Global
Assuming the 90 days horizon Lazard International is expected to generate 7.21 times less return on investment than Lazard Global. In addition to that, Lazard International is 1.38 times more volatile than Lazard Global Listed. It trades about 0.02 of its total potential returns per unit of risk. Lazard Global Listed is currently generating about 0.23 per unit of volatility. If you would invest 1,593 in Lazard Global Listed on September 2, 2024 and sell it today you would earn a total of 43.00 from holding Lazard Global Listed or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard International Strategic vs. Lazard Global Listed
Performance |
| Timeline |
| Lazard International |
| Lazard Global Listed |
Lazard International and Lazard Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard International and Lazard Global
The main advantage of trading using opposite Lazard International and Lazard Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard International 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.The idea behind Lazard International Strategic and Lazard Global Listed pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Lazard Global vs. Lazard Global Listed | Lazard Global vs. Wcm Focused International | Lazard Global vs. Tortoise Mlp Pipeline | Lazard Global vs. Blkrk Lc Cr |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |