Correlation Between Lazard Us and Domini Impact

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Can any of the company-specific risk be diversified away by investing in both Lazard Us and Domini Impact 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 Us and Domini Impact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard Equity Centrated and Domini Impact Equity, you can compare the effects of market volatilities on Lazard Us and Domini Impact 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 Us with a short position of Domini Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Us and Domini Impact.

Diversification Opportunities for Lazard Us and Domini Impact

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Lazard and Domini is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Equity Centrated and Domini Impact Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Domini Impact Equity and Lazard Us 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 Equity Centrated are associated (or correlated) with Domini Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Domini Impact Equity has no effect on the direction of Lazard Us i.e., Lazard Us and Domini Impact go up and down completely randomly.

Pair Corralation between Lazard Us and Domini Impact

If you would invest  1,143  in Lazard Equity Centrated on September 1, 2025 and sell it today you would earn a total of  124.00  from holding Lazard Equity Centrated or generate 10.85% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy1.56%
ValuesDaily Returns

Lazard Equity Centrated  vs.  Domini Impact Equity

 Performance 
       Timeline  
Lazard Equity Centrated 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Lazard Equity Centrated are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Lazard Us may actually be approaching a critical reversion point that can send shares even higher in December 2025.
Domini Impact Equity 

Risk-Adjusted Performance

Fair

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

Lazard Us and Domini Impact Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Lazard Us and Domini Impact

The main advantage of trading using opposite Lazard Us and Domini Impact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Us position performs unexpectedly, Domini Impact 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 Domini Impact will offset losses from the drop in Domini Impact's long position.
The idea behind Lazard Equity Centrated and Domini Impact Equity 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

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