Correlation Between MarketAxess Holdings and Lazard

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both MarketAxess Holdings and Lazard 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 MarketAxess Holdings and Lazard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MarketAxess Holdings and Lazard, you can compare the effects of market volatilities on MarketAxess Holdings and Lazard 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 MarketAxess Holdings with a short position of Lazard. Check out your portfolio center. Please also check ongoing floating volatility patterns of MarketAxess Holdings and Lazard.

Diversification Opportunities for MarketAxess Holdings and Lazard

-0.05
  Correlation Coefficient

Good diversification

The 3 months correlation between MarketAxess and Lazard is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding MarketAxess Holdings and Lazard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard and MarketAxess Holdings 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 MarketAxess Holdings are associated (or correlated) with Lazard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard has no effect on the direction of MarketAxess Holdings i.e., MarketAxess Holdings and Lazard go up and down completely randomly.

Pair Corralation between MarketAxess Holdings and Lazard

Given the investment horizon of 90 days MarketAxess Holdings is expected to under-perform the Lazard. In addition to that, MarketAxess Holdings is 1.08 times more volatile than Lazard. It trades about -0.02 of its total potential returns per unit of risk. Lazard is currently generating about 0.05 per unit of volatility. If you would invest  3,467  in Lazard on October 4, 2024 and sell it today you would earn a total of  1,607  from holding Lazard or generate 46.35% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

MarketAxess Holdings  vs.  Lazard

 Performance 
       Timeline  
MarketAxess Holdings 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days MarketAxess Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
Lazard 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Lazard are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Lazard may actually be approaching a critical reversion point that can send shares even higher in February 2025.

MarketAxess Holdings and Lazard Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with MarketAxess Holdings and Lazard

The main advantage of trading using opposite MarketAxess Holdings and Lazard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MarketAxess Holdings position performs unexpectedly, Lazard 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 will offset losses from the drop in Lazard's long position.
The idea behind MarketAxess Holdings and Lazard 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.
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

Other Complementary Tools

Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Fundamental Analysis
View fundamental data based on most recent published financial statements
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators