Correlation Between Citigroup and Lazard Emerging
Can any of the company-specific risk be diversified away by investing in both Citigroup and Lazard Emerging 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 Citigroup and Lazard Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Lazard Emerging Markets, you can compare the effects of market volatilities on Citigroup and Lazard Emerging 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 Citigroup with a short position of Lazard Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Lazard Emerging.
Diversification Opportunities for Citigroup and Lazard Emerging
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Lazard is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Lazard Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Emerging Markets and Citigroup 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 Citigroup are associated (or correlated) with Lazard Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Emerging Markets has no effect on the direction of Citigroup i.e., Citigroup and Lazard Emerging go up and down completely randomly.
Pair Corralation between Citigroup and Lazard Emerging
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.24 times less return on investment than Lazard Emerging. In addition to that, Citigroup is 2.18 times more volatile than Lazard Emerging Markets. It trades about 0.03 of its total potential returns per unit of risk. Lazard Emerging Markets is currently generating about 0.09 per unit of volatility. If you would invest 1,042 in Lazard Emerging Markets on December 28, 2024 and sell it today you would earn a total of 50.00 from holding Lazard Emerging Markets or generate 4.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.36% |
Values | Daily Returns |
Citigroup vs. Lazard Emerging Markets
Performance |
Timeline |
Citigroup |
Lazard Emerging Markets |
Citigroup and Lazard Emerging Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Lazard Emerging
The main advantage of trading using opposite Citigroup and Lazard Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Lazard Emerging 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 Emerging will offset losses from the drop in Lazard Emerging's long position.Citigroup vs. PJT Partners | Citigroup vs. National Bank Holdings | Citigroup vs. FB Financial Corp | Citigroup vs. Northrim BanCorp |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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