Correlation Between Lazard Global and EXD

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

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

Diversification Opportunities for Lazard Global and EXD

0.0

Correlation Coefficient

Lazard Global  EXD

Pay attention - limited upside

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

Pair Corralation between Lazard Global and EXD

If you would invest (100.00) in EXD on December 26, 2024 and sell it today you would earn a total of  100.00  from holding EXD 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

Lazard Global Total  vs.  EXD

Lazard Global Total

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lazard Global Total has generated negative risk-adjusted returns adding no value to fund investors. Despite fairly strong technical and fundamental indicators, Lazard Global is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

EXD

Risk-Adjusted Performance

Very Weak

Over the last 90 days EXD has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, EXD is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Lazard Global and EXD

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

The idea behind Lazard Global Total and EXD 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.