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 |
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 generate 2.88 times more return on investment than Lazard. However, SAITECH Global is 2.88 times more volatile than Lazard. It trades about 0.16 of its potential returns per unit of risk. Lazard is currently generating about 0.22 per unit of risk. If you would invest 71.00 in SAITECH Global on July 16, 2024 and sell it today you would earn a total of 5.00 from holding SAITECH Global or generate 7.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 47.62% |
Values | Daily Returns |
SAITECH Global vs. Lazard
Performance |
Timeline |
SAITECH Global |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lazard |
SAITECH Global and Lazard Volatility Contrast
Predicted Return Density |
Returns |
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.SAITECH Global vs. Zhong Yang Financial | SAITECH Global vs. Netcapital | SAITECH Global vs. Top KingWin Ltd | SAITECH Global vs. Magic Empire Global |
Lazard vs. PJT Partners | Lazard vs. Moelis Co | Lazard vs. Houlihan Lokey | Lazard vs. Piper Sandler Companies |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing |