Correlation Between Lazard Global and Neuberger Berman

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

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

Diversification Opportunities for Lazard Global and Neuberger Berman

0.82

Correlation Coefficient

Lazard Global  Neuberger Berman

Very poor diversification

The 3 months correlation between Lazard and Neuberger is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Global Total and Neuberger Berman High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman High and Lazard 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 Lazard Global Total are associated (or correlated) with Neuberger Berman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuberger Berman High has no effect on the direction of Lazard Global i.e., Lazard Global and Neuberger Berman go up and down completely randomly.

Pair Corralation between Lazard Global and Neuberger Berman

Considering the 90-day investment horizon Lazard Global Total is expected to generate 0.87 times more return on investment than Neuberger Berman. However, Lazard Global Total is 1.15 times less risky than Neuberger Berman. It trades about 0.03 of its potential returns per unit of risk. Neuberger Berman High is currently generating about 0.0 per unit of risk. If you would invest  1,663  in Lazard Global Total on September 12, 2024 and sell it today you would earn a total of  23.00  from holding Lazard Global Total or generate 1.38% return on investment over 90 days.

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

Lazard Global Total  vs.  Neuberger Berman High

Lazard Global Total

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Lazard Global Total are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. Despite fairly strong technical and fundamental indicators, Lazard Global is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Neuberger Berman High

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Neuberger Berman High has generated negative risk-adjusted returns adding no value to fund investors. In spite of comparatively stable technical indicators, Neuberger Berman is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Lazard Global and Neuberger Berman

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

The idea behind Lazard Global Total and Neuberger Berman High 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.