Correlation Between Lazard Us and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Lazard Us and Dow Jones 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 Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard Strategic Equity and Dow Jones Industrial, you can compare the effects of market volatilities on Lazard Us and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Us and Dow Jones.
Diversification Opportunities for Lazard Us and Dow Jones
Almost no diversification
The 3 months correlation between Lazard and Dow is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Strategic Equity and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Strategic Equity are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Lazard Us i.e., Lazard Us and Dow Jones go up and down completely randomly.
Pair Corralation between Lazard Us and Dow Jones
Assuming the 90 days horizon Lazard Strategic Equity is expected to generate 1.08 times more return on investment than Dow Jones. However, Lazard Us is 1.08 times more volatile than Dow Jones Industrial. It trades about 0.08 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 1,355 in Lazard Strategic Equity on September 4, 2024 and sell it today you would earn a total of 459.00 from holding Lazard Strategic Equity or generate 33.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard Strategic Equity vs. Dow Jones Industrial
Performance |
| Timeline |
Lazard Us and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Lazard Strategic Equity
Pair trading matchups for Lazard Us
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Lazard Us and Dow Jones
The main advantage of trading using opposite Lazard Us and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Us position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Lazard Us vs. Growth Strategy Fund | Lazard Us vs. Small Cap Stock | Lazard Us vs. Balanced Fund Investor | Lazard Us vs. T Rowe Price |
| Dow Jones vs. Gentex | Dow Jones vs. American Axle Manufacturing | Dow Jones vs. Pearson PLC ADR | Dow Jones vs. Marine Products |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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