Correlation Between Lazard Global and Cohen Steers

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

By analyzing existing cross correlation between Lazard Global Listed and Cohen Steers Global, you can compare the effects of market volatilities on Lazard Global and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Global and Cohen Steers.

Diversification Opportunities for Lazard Global and Cohen Steers

0.64

Correlation Coefficient

Lazard Global  Cohen Steers

Poor diversification

The 3 months correlation between Lazard and Cohen is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Global Listed and Cohen Steers Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Global 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 Listed are associated (or correlated) with Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Global has no effect on the direction of Lazard Global i.e., Lazard Global and Cohen Steers go up and down completely randomly.

Pair Corralation between Lazard Global and Cohen Steers

Assuming the 90 days horizon Lazard Global is expected to generate 1.36 times less return on investment than Cohen Steers. But when comparing it to its historical volatility, Lazard Global Listed is 1.0 times less risky than Cohen Steers. It trades about 0.03 of its potential returns per unit of risk. Cohen Steers Global is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  2,476  in Cohen Steers Global on September 4, 2024 and sell it today you would earn a total of  30.00  from holding Cohen Steers Global or generate 1.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Lazard Global Listed  vs.  Cohen Steers Global

Lazard Global Listed

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Lazard Global Listed are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Lazard Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Cohen Steers Global

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen Steers Global are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Cohen Steers is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Lazard Global and Cohen Steers

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

The idea behind Lazard Global Listed and Cohen Steers Global 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.