Correlation Between Gold And and Lazard Capital

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

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

Diversification Opportunities for Gold And and Lazard Capital

0.35

Correlation Coefficient

Gold And  Lazard Capital

Weak diversification

The 3 months correlation between Gold and Lazard is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Gold And Precious 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 Gold And 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 Gold And Precious 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 Gold And i.e., Gold And and Lazard Capital go up and down completely randomly.

Pair Corralation between Gold And and Lazard Capital

Assuming the 90 days horizon Gold And Precious is expected to generate 0.9 times more return on investment than Lazard Capital. However, Gold And Precious is 1.11 times less risky than Lazard Capital. It trades about 0.28 of its potential returns per unit of risk. Lazard Capital Allocator is currently generating about -0.16 per unit of risk. If you would invest  1,143  in Gold And Precious on October 20, 2024 and sell it today you would earn a total of  83.00  from holding Gold And Precious or generate 7.26% return on investment over 90 days.

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

Gold And Precious  vs.  Lazard Capital Allocator

Gold And Precious

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gold And Precious has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Lazard Capital Allocator

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Gold And and Lazard Capital

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

The idea behind Gold And Precious and Lazard Capital Allocator 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.