Correlation Between Lazard and BGC

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

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

Diversification Opportunities for Lazard and BGC

0.66

Correlation Coefficient

Lazard  BGC

Poor diversification

The 3 months correlation between Lazard and BGC is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Lazard and BGC Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGC Group and Lazard 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 are associated (or correlated) with BGC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGC Group has no effect on the direction of Lazard i.e., Lazard and BGC go up and down completely randomly.

Pair Corralation between Lazard and BGC

Considering the 90-day investment horizon Lazard is expected to generate 1.13 times more return on investment than BGC. However, Lazard is 1.13 times more volatile than BGC Group. It trades about 0.19 of its potential returns per unit of risk. BGC Group is currently generating about 0.04 per unit of risk. If you would invest  3,958  in Lazard on May 6, 2025 and sell it today you would earn a total of  1,163  from holding Lazard or generate 29.38% return on investment over 90 days.

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

Lazard  vs.  BGC Group

Lazard

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lazard are ranked lower than 15 (%) 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.

BGC Group

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BGC Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, BGC is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Lazard and BGC

The main advantage of trading using opposite Lazard and BGC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard position performs unexpectedly, BGC 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 BGC will offset losses from the drop in BGC's long position.

The idea behind Lazard and BGC Group 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..