Correlation Between Lazard Small and Lazard International
Can any of the company-specific risk be diversified away by investing in both Lazard Small 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 Small 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 Compounders, you can compare the effects of market volatilities on Lazard Small 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 Small with a short position of Lazard International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Small and Lazard International.
Diversification Opportunities for Lazard Small and Lazard International
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lazard and Lazard is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Small Mid Cap and Lazard International Compounde in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard International and Lazard Small 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 Small i.e., Lazard Small and Lazard International go up and down completely randomly.
Pair Corralation between Lazard Small and Lazard International
Assuming the 90 days horizon Lazard Small Mid Cap is expected to generate 1.59 times more return on investment than Lazard International. However, Lazard Small is 1.59 times more volatile than Lazard International Compounders. It trades about 0.06 of its potential returns per unit of risk. Lazard International Compounders is currently generating about 0.04 per unit of risk. If you would invest 1,148 in Lazard Small Mid Cap on September 3, 2024 and sell it today you would earn a total of 109.00 from holding Lazard Small Mid Cap or generate 9.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard Small Mid Cap vs. Lazard International Compounde
Performance |
| Timeline |
| Lazard Small Mid |
| Lazard International |
Lazard Small and Lazard International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Small and Lazard International
The main advantage of trading using opposite Lazard Small and Lazard International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Small 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 Small vs. Vanguard Small Cap Index | Lazard Small vs. Vanguard Small Cap Index | Lazard Small vs. Vanguard Small Cap Index | Lazard Small vs. Vanguard Small Cap Index |
| Lazard International vs. Fidelity International Growth | Lazard International vs. Fidelity Small Cap | Lazard International vs. Fidelity Advisor Mid | Lazard International vs. HUMANA INC |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |