Correlation Between Lazard International and Lazard Us
Can any of the company-specific risk be diversified away by investing in both Lazard International 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 Lazard International and Lazard Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard International Equity and Lazard Small Mid Cap, you can compare the effects of market volatilities on Lazard International 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 Lazard International with a short position of Lazard Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard International and Lazard Us.
Diversification Opportunities for Lazard International and Lazard Us
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lazard and Lazard is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Lazard International Equity and Lazard Small Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Small Mid and Lazard International 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 Lazard International Equity 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 Small Mid has no effect on the direction of Lazard International i.e., Lazard International and Lazard Us go up and down completely randomly.
Pair Corralation between Lazard International and Lazard Us
Assuming the 90 days horizon Lazard International Equity is expected to under-perform the Lazard Us. But the mutual fund apears to be less risky and, when comparing its historical volatility, Lazard International Equity is 1.87 times less risky than Lazard Us. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Lazard Small Mid Cap is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,155 in Lazard Small Mid Cap on September 2, 2024 and sell it today you would earn a total of 100.00 from holding Lazard Small Mid Cap or generate 8.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard International Equity vs. Lazard Small Mid Cap
Performance |
| Timeline |
| Lazard International |
| Lazard Small Mid |
Lazard International and Lazard Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard International and Lazard Us
The main advantage of trading using opposite Lazard International and Lazard Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard International 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.| Lazard International vs. Pace International Emerging | Lazard International vs. Origin Emerging Markets | Lazard International vs. Artisan Emerging Markets | Lazard International vs. Eagle Mlp Strategy |
| Lazard Us vs. Lazard Global Dynamic | Lazard Us vs. Lazard Global Dynamic | Lazard Us vs. Lazard International Quality | Lazard Us vs. Lazard Equity Franchise |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |