Correlation Between Lazard International and Lazard Equity
Can any of the company-specific risk be diversified away by investing in both Lazard International and Lazard Equity 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 International and Lazard Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard International Equity and Lazard Equity Franchise, you can compare the effects of market volatilities on Lazard International and Lazard Equity 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 International with a short position of Lazard Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard International and Lazard Equity.
Diversification Opportunities for Lazard International and Lazard Equity
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lazard and Lazard is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Lazard International Equity and Lazard Equity Franchise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Equity Franchise and Lazard International 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 International Equity are associated (or correlated) with Lazard Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Equity Franchise has no effect on the direction of Lazard International i.e., Lazard International and Lazard Equity go up and down completely randomly.
Pair Corralation between Lazard International and Lazard Equity
Assuming the 90 days horizon Lazard International Equity is expected to under-perform the Lazard Equity. But the mutual fund apears to be less risky and, when comparing its historical volatility, Lazard International Equity is 1.16 times less risky than Lazard Equity. The mutual fund trades about -0.19 of its potential returns per unit of risk. The Lazard Equity Franchise is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,029 in Lazard Equity Franchise on August 30, 2024 and sell it today you would lose (7.00) from holding Lazard Equity Franchise or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard International Equity vs. Lazard Equity Franchise
Performance |
| Timeline |
| Lazard International |
| Lazard Equity Franchise |
Lazard International and Lazard Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard International and Lazard Equity
The main advantage of trading using opposite Lazard International and Lazard Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard International position performs unexpectedly, Lazard Equity 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 Equity will offset losses from the drop in Lazard Equity's long position.| Lazard International vs. Lazard Global Listed | Lazard International vs. Lazard Global Listed | Lazard International vs. Lazard International Pounders | Lazard International vs. Lazard Global Dynamic |
| Lazard Equity vs. Lazard Global Dynamic | Lazard Equity vs. Lazard Global Dynamic | Lazard Equity vs. Lazard Small Mid Cap | Lazard Equity vs. Lazard Equity Franchise |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |