Correlation Between Lazard Capital and Firsthand Alternative

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

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

Diversification Opportunities for Lazard Capital and Firsthand Alternative

0.94

Correlation Coefficient

Lazard Capital  Firsthand Alternative

Almost no diversification

The 3 months correlation between Lazard and Firsthand is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Capital Allocator and Firsthand Alternative Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Firsthand Alternative and Lazard Capital 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 Capital Allocator are associated (or correlated) with Firsthand Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Firsthand Alternative has no effect on the direction of Lazard Capital i.e., Lazard Capital and Firsthand Alternative go up and down completely randomly.

Pair Corralation between Lazard Capital and Firsthand Alternative

Assuming the 90 days horizon Lazard Capital is expected to generate 7.8 times less return on investment than Firsthand Alternative. But when comparing it to its historical volatility, Lazard Capital Allocator is 2.91 times less risky than Firsthand Alternative. It trades about 0.09 of its potential returns per unit of risk. Firsthand Alternative Energy is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  1,006  in Firsthand Alternative Energy on July 14, 2025 and sell it today you would earn a total of  255.00  from holding Firsthand Alternative Energy or generate 25.35% return on investment over 90 days.

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

Lazard Capital Allocator  vs.  Firsthand Alternative Energy

Lazard Capital Allocator

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Lazard Capital Allocator are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. 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.

Firsthand Alternative

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Firsthand Alternative Energy are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Firsthand Alternative showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lazard Capital and Firsthand Alternative

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

The idea behind Lazard Capital Allocator and Firsthand Alternative Energy 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.