Correlation Between SAITECH Global and Lazard

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

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

Diversification Opportunities for SAITECH Global and Lazard

-0.61

Correlation Coefficient

SAITECH Global  Lazard

Excellent diversification

The 3 months correlation between SAITECH and Lazard is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding SAITECH Global and Lazard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard and SAITECH Global 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 SAITECH Global 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 SAITECH Global i.e., SAITECH Global and Lazard go up and down completely randomly.

Pair Corralation between SAITECH Global and Lazard

Considering the 90-day investment horizon SAITECH Global is expected to under-perform the Lazard. In addition to that, SAITECH Global is 1.48 times more volatile than Lazard. It trades about -0.09 of its total potential returns per unit of risk. Lazard is currently generating about 0.13 per unit of volatility. If you would invest  4,784  in Lazard on August 31, 2024 and sell it today you would earn a total of  988.00  from holding Lazard or generate 20.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	30.16%
Values	Daily Returns

SAITECH Global  vs.  Lazard

SAITECH Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SAITECH Global has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in December 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Lazard

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lazard are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Lazard showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SAITECH Global and Lazard

The main advantage of trading using opposite SAITECH Global and Lazard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAITECH Global 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 SAITECH Global 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..