Correlation Between Lazard Strategic and Lazard Global
Can any of the company-specific risk be diversified away by investing in both Lazard Strategic and Lazard Global 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 Strategic and Lazard Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard Strategic Equity and Lazard Global Dynamic, you can compare the effects of market volatilities on Lazard Strategic and Lazard Global 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 Strategic with a short position of Lazard Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Strategic and Lazard Global.
Diversification Opportunities for Lazard Strategic and Lazard Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lazard and Lazard is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Strategic Equity and Lazard Global Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Global Dynamic and Lazard Strategic 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 Strategic Equity are associated (or correlated) with Lazard Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Global Dynamic has no effect on the direction of Lazard Strategic i.e., Lazard Strategic and Lazard Global go up and down completely randomly.
Pair Corralation between Lazard Strategic and Lazard Global
Assuming the 90 days horizon Lazard Strategic Equity is expected to generate 1.95 times more return on investment than Lazard Global. However, Lazard Strategic is 1.95 times more volatile than Lazard Global Dynamic. It trades about 0.06 of its potential returns per unit of risk. Lazard Global Dynamic is currently generating about 0.04 per unit of risk. If you would invest 1,334 in Lazard Strategic Equity on October 14, 2024 and sell it today you would earn a total of 300.00 from holding Lazard Strategic Equity or generate 22.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.59% |
| Values | Daily Returns |
Lazard Strategic Equity vs. Lazard Global Dynamic
Performance |
| Timeline |
| Lazard Strategic Equity |
| Lazard Global Dynamic |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lazard Strategic and Lazard Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Strategic and Lazard Global
The main advantage of trading using opposite Lazard Strategic and Lazard Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Strategic position performs unexpectedly, Lazard Global 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 Global will offset losses from the drop in Lazard Global's long position.| Lazard Strategic vs. Lazard International Quality | Lazard Strategic vs. Lazard Small Mid Cap | Lazard Strategic vs. Lazard Equity Franchise | Lazard Strategic vs. Lazard Emerging Markets |
| Lazard Global vs. Catalystsmh High Income | Lazard Global vs. Pace High Yield | Lazard Global vs. Barings High Yield | Lazard Global vs. Ab High Income |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |