Correlation Between Lazard Strategic and Lazard International
Can any of the company-specific risk be diversified away by investing in both Lazard Strategic and Lazard International 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 International 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 International Quality, you can compare the effects of market volatilities on Lazard Strategic and Lazard International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Strategic and Lazard International.
Diversification Opportunities for Lazard Strategic and Lazard International
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lazard and Lazard is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Strategic Equity and Lazard International Quality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard International 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard International has no effect on the direction of Lazard Strategic i.e., Lazard Strategic and Lazard International go up and down completely randomly.
Pair Corralation between Lazard Strategic and Lazard International
Assuming the 90 days horizon Lazard Strategic Equity is expected to generate 0.96 times more return on investment than Lazard International. However, Lazard Strategic Equity is 1.04 times less risky than Lazard International. It trades about 0.06 of its potential returns per unit of risk. Lazard International Quality is currently generating about 0.03 per unit of risk. If you would invest 1,334 in Lazard Strategic Equity on October 13, 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 | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Lazard Strategic Equity vs. Lazard International Quality
Performance |
| Timeline |
| Lazard Strategic Equity |
| Lazard International |
Lazard Strategic and Lazard International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Strategic and Lazard International
The main advantage of trading using opposite Lazard Strategic and Lazard International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Strategic position performs unexpectedly, Lazard International 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 International will offset losses from the drop in Lazard International'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 International vs. Lazard Global Listed | Lazard International vs. Artisan Developing World | Lazard International vs. Wcm Focused International |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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