Correlation Between Lazard Capital and Cullen High
Can any of the company-specific risk be diversified away by investing in both Lazard Capital and Cullen High 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 Capital and Cullen High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard Capital Allocator and Cullen High Dividend, you can compare the effects of market volatilities on Lazard Capital and Cullen High 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 Capital with a short position of Cullen High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Capital and Cullen High.
Diversification Opportunities for Lazard Capital and Cullen High
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lazard and Cullen is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Capital Allocator and Cullen High Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullen High Dividend and Lazard Capital 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 Capital Allocator are associated (or correlated) with Cullen High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullen High Dividend has no effect on the direction of Lazard Capital i.e., Lazard Capital and Cullen High go up and down completely randomly.
Pair Corralation between Lazard Capital and Cullen High
Assuming the 90 days horizon Lazard Capital Allocator is expected to generate 1.06 times more return on investment than Cullen High. However, Lazard Capital is 1.06 times more volatile than Cullen High Dividend. It trades about 0.34 of its potential returns per unit of risk. Cullen High Dividend is currently generating about 0.05 per unit of risk. If you would invest 1,095 in Lazard Capital Allocator on September 6, 2024 and sell it today you would earn a total of 49.00 from holding Lazard Capital Allocator or generate 4.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Lazard Capital Allocator vs. Cullen High Dividend
Performance |
Timeline |
Lazard Capital Allocator |
Cullen High Dividend |
Lazard Capital and Cullen High Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lazard Capital and Cullen High
The main advantage of trading using opposite Lazard Capital and Cullen High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Capital position performs unexpectedly, Cullen High 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 Cullen High will offset losses from the drop in Cullen High's long position.Lazard Capital vs. Lazard Global Listed | Lazard Capital vs. Lazard Global Listed | Lazard Capital vs. Lazard International Pounders | Lazard Capital vs. Lazard Global Dynamic |
Cullen High vs. The Value Fund | Cullen High vs. Lazard Global Listed | Cullen High vs. Lazard International Strategic | Cullen High vs. Tcw Relative Value |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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