Correlation Between Lazard Us and Lazard Capital
Can any of the company-specific risk be diversified away by investing in both Lazard Us and Lazard Capital 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 Lazard Us and Lazard Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard Short Duration and Lazard Capital Allocator, you can compare the effects of market volatilities on Lazard Us and Lazard Capital 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 Lazard Us with a short position of Lazard Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Us and Lazard Capital.
Diversification Opportunities for Lazard Us and Lazard Capital
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lazard and Lazard is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Short Duration and Lazard Capital Allocator in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Capital Allocator and Lazard Us 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 Lazard Short Duration are associated (or correlated) with Lazard Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Capital Allocator has no effect on the direction of Lazard Us i.e., Lazard Us and Lazard Capital go up and down completely randomly.
Pair Corralation between Lazard Us and Lazard Capital
Assuming the 90 days horizon Lazard Us is expected to generate 2.48 times less return on investment than Lazard Capital. But when comparing it to its historical volatility, Lazard Short Duration is 4.56 times less risky than Lazard Capital. It trades about 0.12 of its potential returns per unit of risk. Lazard Capital Allocator is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 939.00 in Lazard Capital Allocator on September 6, 2024 and sell it today you would earn a total of 195.00 from holding Lazard Capital Allocator or generate 20.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Lazard Short Duration vs. Lazard Capital Allocator
Performance |
Timeline |
Lazard Short Duration |
Lazard Capital Allocator |
Lazard Us and Lazard Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lazard Us and Lazard Capital
The main advantage of trading using opposite Lazard Us and Lazard Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Us position performs unexpectedly, Lazard Capital 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 Capital will offset losses from the drop in Lazard Capital's long position.Lazard Us vs. Calvert Conservative Allocation | Lazard Us vs. American Funds Conservative | Lazard Us vs. Evaluator Conservative Rms | Lazard Us vs. Delaware Limited Term Diversified |
Lazard Capital vs. Lazard Capital Allocator | Lazard Capital vs. Cullen International High | Lazard Capital vs. Cullen High Dividend | Lazard Capital vs. Lazard International Equity |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
CEOs Directory Screen CEOs from public companies around the world | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Money Managers Screen money managers from public funds and ETFs managed around the world |