Correlation Between Lazard Equity and Lazard Us

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

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

Diversification Opportunities for Lazard Equity and Lazard Us

0.92

Correlation Coefficient

Lazard Equity  Lazard Us

Almost no diversification

The 3 months correlation between Lazard and Lazard is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Equity Franchise and Lazard Strategic Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Strategic Equity and Lazard Equity 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 Equity Franchise are associated (or correlated) with Lazard Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Strategic Equity has no effect on the direction of Lazard Equity i.e., Lazard Equity and Lazard Us go up and down completely randomly.

Pair Corralation between Lazard Equity and Lazard Us

Assuming the 90 days horizon Lazard Equity is expected to generate 18.84 times less return on investment than Lazard Us. In addition to that, Lazard Equity is 1.23 times more volatile than Lazard Strategic Equity. It trades about 0.0 of its total potential returns per unit of risk. Lazard Strategic Equity is currently generating about 0.08 per unit of volatility. If you would invest  1,278  in Lazard Strategic Equity on December 2, 2024 and sell it today you would earn a total of  404.00  from holding Lazard Strategic Equity or generate 31.61% return on investment over 90 days.

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

Lazard Equity Franchise  vs.  Lazard Strategic Equity

Lazard Equity Franchise

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lazard Equity Franchise has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Lazard Strategic Equity

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lazard Strategic Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Lazard Equity and Lazard Us

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

The idea behind Lazard Equity Franchise and Lazard Strategic Equity 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.