Correlation Between Lazard Global and Lazard Us

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

Diversification Opportunities for Lazard Global and Lazard Us

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Lazard and Lazard is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Global Dynamic and Lazard Strategic Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Strategic Equity and Lazard Global 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 Global Dynamic are associated (or correlated) with Lazard Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Strategic Equity has no effect on the direction of Lazard Global i.e., Lazard Global and Lazard Us go up and down completely randomly.

Pair Corralation between Lazard Global and Lazard Us

Assuming the 90 days horizon Lazard Global is expected to generate 2.99 times less return on investment than Lazard Us. But when comparing it to its historical volatility, Lazard Global Dynamic is 2.23 times less risky than Lazard Us. It trades about 0.1 of its potential returns per unit of risk. Lazard Strategic Equity is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  1,418  in Lazard Strategic Equity on September 6, 2024 and sell it today you would earn a total of  402.00  from holding Lazard Strategic Equity or generate 28.35% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy99.63%
ValuesDaily Returns

Lazard Global Dynamic  vs.  Lazard Strategic Equity

 Performance 
       Timeline  
Lazard Global Dynamic 

Risk-Adjusted Performance

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

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Lazard Strategic Equity are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Lazard Us may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Lazard Global and Lazard Us Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Lazard Global and Lazard Us

The main advantage of trading using opposite Lazard Global and Lazard Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Global position performs unexpectedly, Lazard Us 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 Us will offset losses from the drop in Lazard Us' long position.
The idea behind Lazard Global Dynamic and Lazard Strategic 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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