Correlation Between AGBA Old and Lazard

Can any of the company-specific risk be diversified away by investing in both AGBA Old 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 AGBA Old and Lazard into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AGBA Old and Lazard, you can compare the effects of market volatilities on AGBA Old 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 AGBA Old with a short position of Lazard. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGBA Old and Lazard.

Diversification Opportunities for AGBA Old and Lazard

0.0

Correlation Coefficient

AGBA Old  Lazard

Pay attention - limited upside

The 3 months correlation between AGBA and Lazard is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AGBA Old and Lazard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard and AGBA Old 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 AGBA Old 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 AGBA Old i.e., AGBA Old and Lazard go up and down completely randomly.

Pair Corralation between AGBA Old and Lazard

If you would invest (100.00) in AGBA Old on November 29, 2024 and sell it today you would earn a total of  100.00  from holding AGBA Old or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

AGBA Old  vs.  Lazard

AGBA Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days AGBA Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, AGBA Old is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Lazard

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lazard has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with AGBA Old and Lazard

The main advantage of trading using opposite AGBA Old and Lazard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGBA Old 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.

The idea behind AGBA Old and Lazard pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.