Correlation Between Raymond James and Lazard

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

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

Diversification Opportunities for Raymond James and Lazard

0.74

Correlation Coefficient

Raymond James  Lazard

Poor diversification

The 3 months correlation between Raymond and Lazard is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Raymond James Financial and Lazard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard and Raymond James 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 Raymond James Financial 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 Raymond James i.e., Raymond James and Lazard go up and down completely randomly.

Pair Corralation between Raymond James and Lazard

Considering the 90-day investment horizon Raymond James Financial is expected to generate 0.73 times more return on investment than Lazard. However, Raymond James Financial is 1.37 times less risky than Lazard. It trades about -0.24 of its potential returns per unit of risk. Lazard is currently generating about -0.31 per unit of risk. If you would invest  16,492  in Raymond James Financial on October 4, 2024 and sell it today you would lose (992.00) from holding Raymond James Financial or give up 6.02% of portfolio value over 90 days.

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

Raymond James Financial  vs.  Lazard

Raymond James Financial

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Raymond James Financial are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak forward-looking indicators, Raymond James reported solid returns over the last few months and may actually be approaching a breakup point.

Lazard

Risk-Adjusted Performance

2 of 100

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.

Pair Trading with Raymond James and Lazard

The main advantage of trading using opposite Raymond James and Lazard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raymond James 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 Raymond James Financial 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.