Correlation Between Bitcoin Depot and Lazard

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

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

Diversification Opportunities for Bitcoin Depot and Lazard

0.47

Correlation Coefficient

Bitcoin Depot  Lazard

Very weak diversification

The 3 months correlation between Bitcoin and Lazard is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Depot and Lazard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard and Bitcoin Depot 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 Bitcoin Depot 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 Bitcoin Depot i.e., Bitcoin Depot and Lazard go up and down completely randomly.

Pair Corralation between Bitcoin Depot and Lazard

Assuming the 90 days horizon Bitcoin Depot is expected to generate 3.42 times more return on investment than Lazard. However, Bitcoin Depot is 3.42 times more volatile than Lazard. It trades about 0.03 of its potential returns per unit of risk. Lazard is currently generating about -0.09 per unit of risk. If you would invest  7.01  in Bitcoin Depot on December 29, 2024 and sell it today you would lose (0.40) from holding Bitcoin Depot or give up 5.71% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Bitcoin Depot  vs.  Lazard

Bitcoin Depot

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin Depot are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Bitcoin Depot showed solid returns over the last few months and may actually be approaching a breakup point.

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 conflicting performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Bitcoin Depot and Lazard

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

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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.