Correlation Between Lazard Us and Lazard International
Can any of the company-specific risk be diversified away by investing in both Lazard Us and Lazard International 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 Us and Lazard International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard Small Mid Cap and Lazard International Strategic, you can compare the effects of market volatilities on Lazard Us and Lazard International 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 Us with a short position of Lazard International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Us and Lazard International.
Diversification Opportunities for Lazard Us and Lazard International
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lazard and Lazard is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Small Mid Cap and Lazard International Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard International and Lazard Us 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 Small Mid Cap are associated (or correlated) with Lazard International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard International has no effect on the direction of Lazard Us i.e., Lazard Us and Lazard International go up and down completely randomly.
Pair Corralation between Lazard Us and Lazard International
Assuming the 90 days horizon Lazard Small Mid Cap is expected to generate 1.95 times more return on investment than Lazard International. However, Lazard Us is 1.95 times more volatile than Lazard International Strategic. It trades about 0.28 of its potential returns per unit of risk. Lazard International Strategic is currently generating about 0.05 per unit of risk. If you would invest 1,155 in Lazard Small Mid Cap on September 1, 2024 and sell it today you would earn a total of 100.00 from holding Lazard Small Mid Cap or generate 8.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lazard Small Mid Cap vs. Lazard International Strategic
Performance |
| Timeline |
| Lazard Small Mid |
| Lazard International |
Lazard Us and Lazard International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Us and Lazard International
The main advantage of trading using opposite Lazard Us and Lazard International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Us position performs unexpectedly, Lazard International 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 International will offset losses from the drop in Lazard International's long position.| Lazard Us vs. Lazard Small Mid Cap | Lazard Us vs. Lazard International Equity | Lazard Us vs. Lazard International Small | Lazard Us vs. Loomis Sayles Small |
| Lazard International vs. International Fund International | Lazard International vs. Small Cap Equity | Lazard International vs. Laudus Large Cap | Lazard International vs. Large Cap Growth |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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