Correlation Between Cullen High and Lazard International

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Can any of the company-specific risk be diversified away by investing in both Cullen High 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 Cullen High and Lazard International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cullen High Dividend and Lazard International Equity, you can compare the effects of market volatilities on Cullen High 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 Cullen High with a short position of Lazard International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullen High and Lazard International.

Diversification Opportunities for Cullen High and Lazard International

-0.01
  Correlation Coefficient

Good diversification

The 3 months correlation between CULLEN and Lazard is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Cullen High Dividend and Lazard International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard International and Cullen High 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 Cullen High Dividend 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 Cullen High i.e., Cullen High and Lazard International go up and down completely randomly.

Pair Corralation between Cullen High and Lazard International

Assuming the 90 days horizon Cullen High Dividend is expected to generate 0.84 times more return on investment than Lazard International. However, Cullen High Dividend is 1.19 times less risky than Lazard International. It trades about 0.09 of its potential returns per unit of risk. Lazard International Equity is currently generating about 0.05 per unit of risk. If you would invest  1,305  in Cullen High Dividend on September 11, 2024 and sell it today you would earn a total of  192.00  from holding Cullen High Dividend or generate 14.71% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Cullen High Dividend  vs.  Lazard International Equity

 Performance 
       Timeline  
Cullen High Dividend 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Cullen High Dividend are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Cullen High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Lazard International 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Lazard International Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Lazard International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Cullen High and Lazard International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cullen High and Lazard International

The main advantage of trading using opposite Cullen High and Lazard International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullen High 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.
The idea behind Cullen High Dividend and Lazard International Equity 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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