Correlation Between Oppenheimer Holdings and Lazard

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

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

Diversification Opportunities for Oppenheimer Holdings and Lazard

0.76

Correlation Coefficient

Oppenheimer Holdings  Lazard

Poor diversification

The 3 months correlation between Oppenheimer and Lazard is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Holdings and Lazard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard and Oppenheimer 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 Oppenheimer 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 Oppenheimer Holdings i.e., Oppenheimer Holdings and Lazard go up and down completely randomly.

Pair Corralation between Oppenheimer Holdings and Lazard

Considering the 90-day investment horizon Oppenheimer Holdings is expected to generate 0.74 times more return on investment than Lazard. However, Oppenheimer Holdings is 1.36 times less risky than Lazard. It trades about -0.06 of its potential returns per unit of risk. Lazard is currently generating about -0.09 per unit of risk. If you would invest  6,467  in Oppenheimer Holdings on December 30, 2024 and sell it today you would lose (549.00) from holding Oppenheimer Holdings or give up 8.49% of portfolio value over 90 days.

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

Oppenheimer Holdings  vs.  Lazard

Oppenheimer Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Oppenheimer Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Lazard

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Oppenheimer Holdings and Lazard

The main advantage of trading using opposite Oppenheimer Holdings and Lazard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer 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 Oppenheimer 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.

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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.