Correlation Between Piper Sandler and Lazard
Can any of the company-specific risk be diversified away by investing in both Piper Sandler and Lazard 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 Piper Sandler and Lazard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Piper Sandler Companies and Lazard, you can compare the effects of market volatilities on Piper Sandler and Lazard 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 Piper Sandler with a short position of Lazard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piper Sandler and Lazard.
Diversification Opportunities for Piper Sandler and Lazard
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Piper and Lazard is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Piper Sandler Companies and Lazard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard and Piper Sandler 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 Piper Sandler Companies are associated (or correlated) with Lazard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard has no effect on the direction of Piper Sandler i.e., Piper Sandler and Lazard go up and down completely randomly.
Pair Corralation between Piper Sandler and Lazard
Given the investment horizon of 90 days Piper Sandler Companies is expected to generate 1.17 times more return on investment than Lazard. However, Piper Sandler is 1.17 times more volatile than Lazard. It trades about 0.22 of its potential returns per unit of risk. Lazard is currently generating about 0.21 per unit of risk. If you would invest 28,877 in Piper Sandler Companies on August 28, 2024 and sell it today you would earn a total of 6,004 from holding Piper Sandler Companies or generate 20.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piper Sandler Companies vs. Lazard
Performance |
| Timeline |
| Piper Sandler Companies |
| Lazard |
Piper Sandler and Lazard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piper Sandler and Lazard
The main advantage of trading using opposite Piper Sandler and Lazard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piper Sandler position performs unexpectedly, Lazard 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 will offset losses from the drop in Lazard's long position.| Piper Sandler vs. Perella Weinberg Partners | Piper Sandler vs. Evercore Partners | Piper Sandler vs. Lazard | Piper Sandler vs. Moelis Co |
| Lazard vs. PJT Partners | Lazard vs. Moelis Co | Lazard vs. Houlihan Lokey | Lazard vs. Piper Sandler Companies |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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