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 Total and Cohen Steers Closed, 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

0.11

Correlation Coefficient

Lazard Global  Cohen Steers

Average diversification

The 3 months correlation between Lazard and Cohen is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Global Total and Cohen Steers Closed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Closed 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 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 Closed 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

Considering the 90-day investment horizon Lazard Global is expected to generate 2.44 times less return on investment than Cohen Steers. In addition to that, Lazard Global is 1.51 times more volatile than Cohen Steers Closed. It trades about 0.06 of its total potential returns per unit of risk. Cohen Steers Closed is currently generating about 0.23 per unit of volatility. If you would invest  1,279  in Cohen Steers Closed on September 13, 2024 and sell it today you would earn a total of  36.00  from holding Cohen Steers Closed or generate 2.81% return on investment over 90 days.

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

Lazard Global Total  vs.  Cohen Steers Closed

Lazard Global Total

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Lazard Global Total are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. 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.

Cohen Steers Closed

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen Steers Closed are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly stable basic indicators, Cohen Steers is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

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 Total and Cohen Steers Closed 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.