Correlation Between Lazard Equity and Lazard Corporate
Can any of the company-specific risk be diversified away by investing in both Lazard Equity and Lazard Corporate 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 Corporate 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 Corporate Income, you can compare the effects of market volatilities on Lazard Equity and Lazard Corporate 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 Corporate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Equity and Lazard Corporate.
Diversification Opportunities for Lazard Equity and Lazard Corporate
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lazard and Lazard is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Equity Franchise and Lazard Corporate Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Corporate Income 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 Corporate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Corporate Income has no effect on the direction of Lazard Equity i.e., Lazard Equity and Lazard Corporate go up and down completely randomly.
Pair Corralation between Lazard Equity and Lazard Corporate
Assuming the 90 days horizon Lazard Equity Franchise is expected to under-perform the Lazard Corporate. In addition to that, Lazard Equity is 3.44 times more volatile than Lazard Corporate Income. It trades about -0.02 of its total potential returns per unit of risk. Lazard Corporate Income is currently generating about 0.09 per unit of volatility. If you would invest 1,597 in Lazard Corporate Income on October 13, 2024 and sell it today you would earn a total of 204.00 from holding Lazard Corporate Income or generate 12.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Lazard Equity Franchise vs. Lazard Corporate Income
Performance |
| Timeline |
| Lazard Equity Franchise |
| Lazard Corporate Income |
Lazard Equity and Lazard Corporate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Equity and Lazard Corporate
The main advantage of trading using opposite Lazard Equity and Lazard Corporate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Equity position performs unexpectedly, Lazard Corporate 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 Corporate will offset losses from the drop in Lazard Corporate's long position.| Lazard Equity vs. James Balanced Golden | Lazard Equity vs. Deutsche Gold Precious | Lazard Equity vs. International Investors Gold | Lazard Equity vs. Sprott Gold Equity |
| Lazard Corporate vs. Tcw High Yield | Lazard Corporate vs. Pax High Yield | Lazard Corporate vs. High Yield Fund Investor | Lazard Corporate vs. Buffalo High Yield |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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