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

0.66
  Correlation Coefficient

Poor diversification

The 3 months correlation between GOLDMAN and Lazard is 0.66. 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 1.5 times more return on investment than Lazard Us. However, Goldman Sachs is 1.5 times more volatile than Lazard Strategic Equity. It trades about 0.45 of its potential returns per unit of risk. Lazard Strategic Equity is currently generating about 0.2 per unit of risk. If you would invest  2,130  in Goldman Sachs Growth on September 6, 2024 and sell it today you would earn a total of  256.00  from holding Goldman Sachs Growth or generate 12.02% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Goldman Sachs Growth  vs.  Lazard Strategic Equity

 Performance 
       Timeline  
Goldman Sachs Growth 

Risk-Adjusted Performance

32 of 100

 
Weak
 
Strong
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Goldman Sachs Growth are ranked lower than 32 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Goldman Sachs showed solid returns over the last few months and may actually be approaching a breakup point.
Lazard Strategic Equity 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
OK
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.

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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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