Correlation Between Raymond James and Lazard
Can any of the company-specific risk be diversified away by investing in both Raymond James 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 Raymond James and Lazard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raymond James Financial and Lazard, you can compare the effects of market volatilities on Raymond James 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 Raymond James with a short position of Lazard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raymond James and Lazard.
Diversification Opportunities for Raymond James and Lazard
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Raymond and Lazard is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Raymond James Financial and Lazard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard and Raymond James 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 Raymond James Financial 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 Raymond James i.e., Raymond James and Lazard go up and down completely randomly.
Pair Corralation between Raymond James and Lazard
Considering the 90-day investment horizon Raymond James is expected to generate 1.54 times less return on investment than Lazard. But when comparing it to its historical volatility, Raymond James Financial is 1.42 times less risky than Lazard. It trades about 0.13 of its potential returns per unit of risk. Lazard is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,762 in Lazard on August 24, 2024 and sell it today you would earn a total of 2,950 from holding Lazard or generate 106.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Raymond James Financial vs. Lazard
Performance |
| Timeline |
| Raymond James Financial |
| Lazard |
Raymond James and Lazard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raymond James and Lazard
The main advantage of trading using opposite Raymond James and Lazard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raymond James 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.| Raymond James vs. Tradeweb Markets | Raymond James vs. PJT Partners | Raymond James vs. Moelis Co | Raymond James vs. LPL Financial Holdings |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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