Correlation Between Mid Cap and Lazard Us

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

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

Diversification Opportunities for Mid Cap and Lazard Us

0.42

Correlation Coefficient

Mid Cap  Lazard Us

Very weak diversification

The 3 months correlation between Mid and Lazard is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Growth and Lazard Equity Centrated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Equity Centrated and Mid Cap 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 Mid Cap Growth are associated (or correlated) with Lazard Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Equity Centrated has no effect on the direction of Mid Cap i.e., Mid Cap and Lazard Us go up and down completely randomly.

Pair Corralation between Mid Cap and Lazard Us

Assuming the 90 days horizon Mid Cap Growth is expected to under-perform the Lazard Us. But the mutual fund apears to be less risky and, when comparing its historical volatility, Mid Cap Growth is 1.44 times less risky than Lazard Us. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Lazard Equity Centrated is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,160  in Lazard Equity Centrated on August 18, 2025 and sell it today you would earn a total of  67.00  from holding Lazard Equity Centrated or generate 5.78% return on investment over 90 days.

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

Mid Cap Growth  vs.  Lazard Equity Centrated

Mid Cap Growth

Risk-Adjusted Performance

Weakest

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

Lazard Equity Centrated

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Lazard Equity Centrated are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Lazard Us is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mid Cap and Lazard Us

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

The idea behind Mid Cap Growth and Lazard Equity Centrated 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.