Correlation Between Amg Managers and Lazard International

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

By analyzing existing cross correlation between Amg Managers Centersquare and Lazard International Pounders, you can compare the effects of market volatilities on Amg Managers and Lazard International 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 Amg Managers with a short position of Lazard International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Lazard International.

Diversification Opportunities for Amg Managers and Lazard International

0.29

Correlation Coefficient

Amg Managers  Lazard International

Modest diversification

The 3 months correlation between Amg and Lazard is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and Lazard International Pounders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard International and Amg Managers 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 Amg Managers Centersquare are associated (or correlated) with Lazard International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard International has no effect on the direction of Amg Managers i.e., Amg Managers and Lazard International go up and down completely randomly.

Pair Corralation between Amg Managers and Lazard International

Assuming the 90 days horizon Amg Managers Centersquare is expected to under-perform the Lazard International. In addition to that, Amg Managers is 1.04 times more volatile than Lazard International Pounders. It trades about -0.07 of its total potential returns per unit of risk. Lazard International Pounders is currently generating about -0.02 per unit of volatility. If you would invest  1,715  in Lazard International Pounders on September 14, 2024 and sell it today you would lose (17.00) from holding Lazard International Pounders or give up 0.99% of portfolio value over 90 days.

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

Amg Managers Centersquare  vs.  Lazard International Pounders

Amg Managers Centersquare

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amg Managers Centersquare has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Amg Managers is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Lazard International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lazard International Pounders has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Lazard International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Amg Managers and Lazard International

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

The idea behind Amg Managers Centersquare and Lazard International Pounders 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.