Correlation Between La Z and Interpublic

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both La Z and Interpublic 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 La Z and Interpublic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between La-Z-Boy and Interpublic Group, you can compare the effects of market volatilities on La Z and Interpublic 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 La Z with a short position of Interpublic. Check out your portfolio center. Please also check ongoing floating volatility patterns of La Z and Interpublic.

Diversification Opportunities for La Z and Interpublic

  Correlation Coefficient

Almost no diversification

The 3 months correlation between La Z and Interpublic is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding La-Z-Boy and Interpublic Group Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interpublic Group and La Z 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 La-Z-Boy are associated (or correlated) with Interpublic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interpublic Group has no effect on the direction of La Z i.e., La Z and Interpublic go up and down completely randomly.

Pair Corralation between La Z and Interpublic

Considering the 90-day investment horizon La-Z-Boy is expected to under-perform the Interpublic. In addition to that, La Z is 1.27 times more volatile than Interpublic Group. It trades about -0.18 of its total potential returns per unit of risk. Interpublic Group is currently generating about -0.07 per unit of volatility. If you would invest  2,700  in Interpublic Group on July 6, 2022 and sell it today you would lose (90.00)  from holding Interpublic Group or give up 3.33% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
ValuesDaily Returns

La-Z-Boy  vs.  Interpublic Group Of

 Performance (%) 
La Z Performance
0 of 100
Over the last 90 days La-Z-Boy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, La Z is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

La Z Price Channel

Interpublic Group 
Interpublic Performance
0 of 100
Over the last 90 days Interpublic Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Interpublic is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Interpublic Price Channel

La Z and Interpublic Volatility Contrast

   Predicted Return Density   

Pair Trading with La Z and Interpublic

The main advantage of trading using opposite La Z and Interpublic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if La Z position performs unexpectedly, Interpublic 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 Interpublic will offset losses from the drop in Interpublic's long position.
La Z vs. Amazon Inc
The idea behind La-Z-Boy and Interpublic Group 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.
Interpublic vs. Amazon Inc
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

Other Complementary Tools

Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume