Correlation Between Lazard Capital and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Lazard Capital and Goldman Sachs 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 Goldman Sachs 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 Goldman Sachs Clean, you can compare the effects of market volatilities on Lazard Capital and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Capital and Goldman Sachs.
Diversification Opportunities for Lazard Capital and Goldman Sachs
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lazard and Goldman is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Capital Allocator and Goldman Sachs Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Clean 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Clean has no effect on the direction of Lazard Capital i.e., Lazard Capital and Goldman Sachs go up and down completely randomly.
Pair Corralation between Lazard Capital and Goldman Sachs
Assuming the 90 days horizon Lazard Capital Allocator is expected to generate 0.68 times more return on investment than Goldman Sachs. However, Lazard Capital Allocator is 1.46 times less risky than Goldman Sachs. It trades about 0.06 of its potential returns per unit of risk. Goldman Sachs Clean is currently generating about -0.03 per unit of risk. If you would invest 1,072 in Lazard Capital Allocator on September 15, 2024 and sell it today you would earn a total of 59.00 from holding Lazard Capital Allocator or generate 5.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Lazard Capital Allocator vs. Goldman Sachs Clean
Performance |
Timeline |
Lazard Capital Allocator |
Goldman Sachs Clean |
Lazard Capital and Goldman Sachs Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lazard Capital and Goldman Sachs
The main advantage of trading using opposite Lazard Capital and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Capital position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.Lazard Capital vs. Goldman Sachs Clean | Lazard Capital vs. James Balanced Golden | Lazard Capital vs. Gold And Precious | Lazard Capital vs. Vy Goldman Sachs |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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