Correlation Between Goldman Sachs and Lazard Us
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs 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 Goldman Sachs and Lazard Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Growth and Lazard Strategic Equity, you can compare the effects of market volatilities on Goldman Sachs 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 Goldman Sachs with a short position of Lazard Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Lazard Us.
Diversification Opportunities for Goldman Sachs and Lazard Us
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Goldman and Lazard is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Growth 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 Goldman Sachs 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 Goldman Sachs Growth 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 Goldman Sachs i.e., Goldman Sachs and Lazard Us go up and down completely randomly.
Pair Corralation between Goldman Sachs and Lazard Us
Assuming the 90 days horizon Goldman Sachs Growth is expected to generate 1.33 times more return on investment than Lazard Us. However, Goldman Sachs is 1.33 times more volatile than Lazard Strategic Equity. It trades about 0.4 of its potential returns per unit of risk. Lazard Strategic Equity is currently generating about 0.12 per unit of risk. If you would invest 1,914 in Goldman Sachs Growth on September 10, 2024 and sell it today you would earn a total of 510.00 from holding Goldman Sachs Growth or generate 26.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Goldman Sachs Growth vs. Lazard Strategic Equity
Performance |
Timeline |
Goldman Sachs Growth |
Lazard Strategic Equity |
Goldman Sachs and Lazard Us Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Goldman Sachs and Lazard Us
The main advantage of trading using opposite Goldman Sachs and Lazard Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs 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.Goldman Sachs vs. Jhancock Diversified Macro | Goldman Sachs vs. Davenport Small Cap | Goldman Sachs vs. Sentinel Small Pany | Goldman Sachs vs. Blackrock Sm Cap |
Lazard Us vs. Amg River Road | Lazard Us vs. Small Cap Value Series | Lazard Us vs. Ab Small Cap | Lazard Us vs. Mutual Of America |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
CEOs Directory Screen CEOs from public companies around the world | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |