Correlation Between Lazard Us and Lazard Systematic
Can any of the company-specific risk be diversified away by investing in both Lazard Us and Lazard Systematic 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 Systematic 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 Systematic Small, you can compare the effects of market volatilities on Lazard Us and Lazard Systematic 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 Systematic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Us and Lazard Systematic.
Diversification Opportunities for Lazard Us and Lazard Systematic
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lazard and Lazard is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Small Mid Cap and Lazard Systematic Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Systematic Small 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 Systematic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Systematic Small has no effect on the direction of Lazard Us i.e., Lazard Us and Lazard Systematic go up and down completely randomly.
Pair Corralation between Lazard Us and Lazard Systematic
Assuming the 90 days horizon Lazard Small Mid Cap is expected to under-perform the Lazard Systematic. In addition to that, Lazard Us is 1.08 times more volatile than Lazard Systematic Small. It trades about -0.01 of its total potential returns per unit of risk. Lazard Systematic Small is currently generating about 0.06 per unit of volatility. If you would invest 896.00 in Lazard Systematic Small on October 13, 2024 and sell it today you would earn a total of 221.00 from holding Lazard Systematic Small or generate 24.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 66.13% |
| Values | Daily Returns |
Lazard Small Mid Cap vs. Lazard Systematic Small
Performance |
| Timeline |
| Lazard Small Mid |
| Lazard Systematic Small |
Lazard Us and Lazard Systematic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Us and Lazard Systematic
The main advantage of trading using opposite Lazard Us and Lazard Systematic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Us position performs unexpectedly, Lazard Systematic 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 Systematic will offset losses from the drop in Lazard Systematic'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 Systematic vs. Lazard International Quality | Lazard Systematic vs. Lazard Small Mid Cap | Lazard Systematic vs. Lazard Equity Franchise | Lazard Systematic vs. Lazard Emerging Markets |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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