Correlation Between Lazard International and Ssga International
Can any of the company-specific risk be diversified away by investing in both Lazard International and Ssga 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 International and Ssga International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard International Small and Ssga International Stock, you can compare the effects of market volatilities on Lazard International and Ssga 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 International with a short position of Ssga International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard International and Ssga International.
Diversification Opportunities for Lazard International and Ssga International
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lazard and Ssga is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Lazard International Small and Ssga International Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssga International Stock 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 Small are associated (or correlated) with Ssga International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssga International Stock has no effect on the direction of Lazard International i.e., Lazard International and Ssga International go up and down completely randomly.
Pair Corralation between Lazard International and Ssga International
Assuming the 90 days horizon Lazard International Small is expected to under-perform the Ssga International. In addition to that, Lazard International is 1.06 times more volatile than Ssga International Stock. It trades about -0.04 of its total potential returns per unit of risk. Ssga International Stock is currently generating about 0.04 per unit of volatility. If you would invest 1,139 in Ssga International Stock on September 1, 2024 and sell it today you would earn a total of 6.00 from holding Ssga International Stock or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard International Small vs. Ssga International Stock
Performance |
| Timeline |
| Lazard International |
| Ssga International Stock |
Lazard International and Ssga International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard International and Ssga International
The main advantage of trading using opposite Lazard International and Ssga International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard International position performs unexpectedly, Ssga 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 Ssga International will offset losses from the drop in Ssga International's long position.| Lazard International vs. Ssga International Stock | Lazard International vs. Schwab Small Cap Equity | Lazard International vs. Schwab Large Cap Growth | Lazard International vs. Harding Loevner Emerging |
| Ssga International vs. Schwab E Equity | Ssga International vs. Harding Loevner Emerging | Ssga International vs. Schwab Large Cap Growth | Ssga International vs. Schwab Dividend Equity |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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