Correlation Between Perella Weinberg and Lazard
Can any of the company-specific risk be diversified away by investing in both Perella Weinberg 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 Perella Weinberg and Lazard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perella Weinberg Partners and Lazard, you can compare the effects of market volatilities on Perella Weinberg 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 Perella Weinberg with a short position of Lazard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perella Weinberg and Lazard.
Diversification Opportunities for Perella Weinberg and Lazard
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Perella and Lazard is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Perella Weinberg Partners and Lazard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard and Perella Weinberg 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 Perella Weinberg Partners 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 Perella Weinberg i.e., Perella Weinberg and Lazard go up and down completely randomly.
Pair Corralation between Perella Weinberg and Lazard
Considering the 90-day investment horizon Perella Weinberg Partners is expected to generate 1.17 times more return on investment than Lazard. However, Perella Weinberg is 1.17 times more volatile than Lazard. It trades about 0.25 of its potential returns per unit of risk. Lazard is currently generating about 0.21 per unit of risk. If you would invest 2,076 in Perella Weinberg Partners on August 28, 2024 and sell it today you would earn a total of 508.00 from holding Perella Weinberg Partners or generate 24.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perella Weinberg Partners vs. Lazard
Performance |
| Timeline |
| Perella Weinberg Partners |
| Lazard |
Perella Weinberg and Lazard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perella Weinberg and Lazard
The main advantage of trading using opposite Perella Weinberg and Lazard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perella Weinberg 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.| Perella Weinberg vs. Evercore Partners | Perella Weinberg vs. Lazard | Perella Weinberg vs. Piper Sandler Companies | Perella Weinberg 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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