Correlation Between Lazard Equity and Lazard Capital
Can any of the company-specific risk be diversified away by investing in both Lazard Equity 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 Equity 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 Equity Franchise and Lazard Capital Allocator, you can compare the effects of market volatilities on Lazard Equity 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 Equity with a short position of Lazard Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Equity and Lazard Capital.
Diversification Opportunities for Lazard Equity 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 Equity Franchise 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 Equity 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 Equity Franchise 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 Equity i.e., Lazard Equity and Lazard Capital go up and down completely randomly.
Pair Corralation between Lazard Equity and Lazard Capital
Assuming the 90 days horizon Lazard Equity is expected to generate 7.96 times less return on investment than Lazard Capital. In addition to that, Lazard Equity is 1.38 times more volatile than Lazard Capital Allocator. It trades about 0.03 of its total potential returns per unit of risk. Lazard Capital Allocator is currently generating about 0.34 per unit of volatility. If you would invest 1,081 in Lazard Capital Allocator on September 2, 2024 and sell it today you would earn a total of 49.00 from holding Lazard Capital Allocator or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard Equity Franchise vs. Lazard Capital Allocator
Performance |
| Timeline |
| Lazard Equity Franchise |
| Lazard Capital Allocator |
Lazard Equity and Lazard Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Equity and Lazard Capital
The main advantage of trading using opposite Lazard Equity and Lazard Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Equity 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.| Lazard Equity vs. Delaware Healthcare Fund | Lazard Equity vs. Deutsche Health And | Lazard Equity vs. Baron Health Care | Lazard Equity vs. Eventide Healthcare Life |
| Lazard Capital vs. Cullen International High | Lazard Capital vs. Cullen High Dividend | Lazard Capital vs. Lazard International Equity | Lazard Capital vs. The Arbitrage Event Driven |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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