Correlation Between NYSE Composite and Lazard Strategic
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Lazard Strategic 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 Strategic 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 Strategic Equity, you can compare the effects of market volatilities on NYSE Composite and Lazard Strategic 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 Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Lazard Strategic.
Diversification Opportunities for NYSE Composite and Lazard Strategic
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NYSE and Lazard is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Lazard Strategic Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Strategic Equity 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 Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Strategic Equity has no effect on the direction of NYSE Composite i.e., NYSE Composite and Lazard Strategic go up and down completely randomly.
Pair Corralation between NYSE Composite and Lazard Strategic
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.87 times more return on investment than Lazard Strategic. However, NYSE Composite is 1.15 times less risky than Lazard Strategic. It trades about 0.11 of its potential returns per unit of risk. Lazard Strategic Equity is currently generating about 0.08 per unit of risk. If you would invest 1,523,001 in NYSE Composite on September 26, 2024 and sell it today you would earn a total of 411,147 from holding NYSE Composite or generate 27.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.68% |
| Values | Daily Returns |
NYSE Composite vs. Lazard Strategic Equity
Performance |
| Timeline |
NYSE Composite and Lazard Strategic Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Lazard Strategic Equity
Pair trading matchups for Lazard Strategic
Pair Trading with NYSE Composite and Lazard Strategic
The main advantage of trading using opposite NYSE Composite and Lazard Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Lazard Strategic 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 Strategic will offset losses from the drop in Lazard Strategic's long position.| NYSE Composite vs. National CineMedia | NYSE Composite vs. BCE Inc | NYSE Composite vs. Zhihu Inc ADR | NYSE Composite vs. Western Midstream Partners |
| Lazard Strategic vs. Lazard Global Dynamic | Lazard Strategic vs. Lazard Global Dynamic | Lazard Strategic vs. Lazard International Quality | Lazard Strategic vs. Lazard Small Mid Cap |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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