Correlation Between Lazard and Helix Acquisition

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

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

Diversification Opportunities for Lazard and Helix Acquisition

0.3

Correlation Coefficient

Lazard  Helix Acquisition

Weak diversification

The 3 months correlation between Lazard and Helix is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Lazard and Helix Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helix Acquisition Corp and Lazard 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 are associated (or correlated) with Helix Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helix Acquisition Corp has no effect on the direction of Lazard i.e., Lazard and Helix Acquisition go up and down completely randomly.

Pair Corralation between Lazard and Helix Acquisition

Considering the 90-day investment horizon Lazard is expected to generate 5.03 times more return on investment than Helix Acquisition. However, Lazard is 5.03 times more volatile than Helix Acquisition Corp. It trades about 0.09 of its potential returns per unit of risk. Helix Acquisition Corp is currently generating about 0.05 per unit of risk. If you would invest  4,736  in Lazard on September 13, 2024 and sell it today you would earn a total of  668.00  from holding Lazard or generate 14.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Lazard  vs.  Helix Acquisition Corp

Lazard

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lazard are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Lazard showed solid returns over the last few months and may actually be approaching a breakup point.

Helix Acquisition Corp

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Helix Acquisition Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Helix Acquisition 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 and Helix Acquisition

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

The idea behind Lazard and Helix Acquisition Corp 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.