Correlation Between Lazard International and Lazard Capital
Can any of the company-specific risk be diversified away by investing in both Lazard International and Lazard Capital 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 Capital 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 Capital Allocator, you can compare the effects of market volatilities on Lazard International and Lazard Capital 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 Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard International and Lazard Capital.
Diversification Opportunities for Lazard International and Lazard Capital
-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 International Strategic and Lazard Capital Allocator in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Capital Allocator 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 Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Capital Allocator has no effect on the direction of Lazard International i.e., Lazard International and Lazard Capital go up and down completely randomly.
Pair Corralation between Lazard International and Lazard Capital
Assuming the 90 days horizon Lazard International Strategic is expected to under-perform the Lazard Capital. In addition to that, Lazard International is 1.12 times more volatile than Lazard Capital Allocator. It trades about -0.11 of its total potential returns per unit of risk. Lazard Capital Allocator is currently generating about 0.14 per unit of volatility. If you would invest 1,089 in Lazard Capital Allocator on August 30, 2024 and sell it today you would earn a total of 23.00 from holding Lazard Capital Allocator or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lazard International Strategic vs. Lazard Capital Allocator
Performance |
| Timeline |
| Lazard International |
| Lazard Capital Allocator |
Lazard International and Lazard Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard International and Lazard Capital
The main advantage of trading using opposite Lazard International and Lazard Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard International position performs unexpectedly, Lazard Capital 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 Capital will offset losses from the drop in Lazard Capital's long position.The idea behind Lazard International Strategic and Lazard Capital Allocator 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 Capital vs. Lazard Capital Allocator | Lazard Capital vs. Cullen International High | Lazard Capital vs. Cullen High Dividend | Lazard Capital vs. Lazard International Equity |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |