Correlation Between Greenhill and Lazard

Can any of the company-specific risk be diversified away by investing in both Greenhill and Lazard 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 Greenhill and Lazard into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Greenhill Co and Lazard, you can compare the effects of market volatilities on Greenhill and Lazard 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 Greenhill with a short position of Lazard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenhill and Lazard.

Diversification Opportunities for Greenhill and Lazard

0.0

Correlation Coefficient

Greenhill  Lazard

Pay attention - limited upside

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

Pair Corralation between Greenhill and Lazard

If you would invest (100.00) in Greenhill Co on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Greenhill Co or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Greenhill Co  vs.  Lazard

Greenhill

Risk-Adjusted Performance

Very Weak

Over the last 90 days Greenhill Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical indicators, Greenhill is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Lazard

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lazard has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Greenhill and Lazard

The main advantage of trading using opposite Greenhill and Lazard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenhill position performs unexpectedly, Lazard 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 will offset losses from the drop in Lazard's long position.

The idea behind Greenhill Co and Lazard 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.

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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.