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
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lazard and Lazard is 0.55. 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 Strategic is expected to generate 1.33 times more return on investment than Lazard Global. However, Lazard International is 1.33 times more volatile than Lazard Global Listed. It trades about 0.27 of its potential returns per unit of risk. Lazard Global Listed is currently generating about 0.24 per unit of risk. If you would invest 1,368 in Lazard International Strategic on October 23, 2024 and sell it today you would earn a total of 51.00 from holding Lazard International Strategic or generate 3.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| 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.| Lazard International vs. International Fund International | Lazard International vs. Small Cap Equity | Lazard International vs. Laudus Large Cap | Lazard International vs. Large Cap Growth |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |