Correlation Between NYSE Composite and Lazard Us
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Lazard Us 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 NYSE Composite and Lazard Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Lazard Corporate Income, you can compare the effects of market volatilities on NYSE Composite and Lazard Us 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 NYSE Composite with a short position of Lazard Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Lazard Us.
Diversification Opportunities for NYSE Composite and Lazard Us
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and Lazard is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite are associated (or correlated) with Lazard Us. 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 NYSE Composite i.e., NYSE Composite and Lazard Us go up and down completely randomly.
Pair Corralation between NYSE Composite and Lazard Us
Assuming the 90 days trading horizon NYSE Composite is expected to generate 3.09 times more return on investment than Lazard Us. However, NYSE Composite is 3.09 times more volatile than Lazard Corporate Income. It trades about 0.3 of its potential returns per unit of risk. Lazard Corporate Income is currently generating about 0.36 per unit of risk. If you would invest 1,923,848 in NYSE Composite on October 28, 2024 and sell it today you would earn a total of 75,899 from holding NYSE Composite or generate 3.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Lazard Corporate Income
Performance |
| Timeline |
NYSE Composite and Lazard Us Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Lazard Corporate Income
Pair trading matchups for Lazard Us
Pair Trading with NYSE Composite and Lazard Us
The main advantage of trading using opposite NYSE Composite and Lazard Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Lazard Us 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 Us will offset losses from the drop in Lazard Us' long position.| NYSE Composite vs. United Parks Resorts | NYSE Composite vs. Paranovus Entertainment Technology | NYSE Composite vs. FitLife Brands, Common | NYSE Composite vs. Sphere Entertainment Co |
| Lazard Us vs. Tcw High Yield | Lazard Us vs. Pax High Yield | Lazard Us vs. High Yield Fund Investor | Lazard Us 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 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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