Correlation Between Goldman Sachs and Lazard Us

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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

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Goldman and Lazard is 0.0. 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

If you would invest  1,710  in Lazard Strategic Equity on September 7, 2024 and sell it today you would earn a total of  103.00  from holding Lazard Strategic Equity or generate 6.02% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Goldman Sachs Growth  vs.  Lazard Strategic Equity

 Performance 
       Timeline  
Goldman Sachs Growth 

Risk-Adjusted Performance

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Over the last 90 days Goldman Sachs Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Goldman Sachs 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

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Lazard Strategic Equity are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Lazard Us is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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.
The idea behind Goldman Sachs Growth 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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