Correlation Between TOWNSQUARE MEDIA and Lendlease
Can any of the company-specific risk be diversified away by investing in both TOWNSQUARE MEDIA and Lendlease 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 TOWNSQUARE MEDIA and Lendlease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TOWNSQUARE MEDIA INC and Lendlease Group, you can compare the effects of market volatilities on TOWNSQUARE MEDIA and Lendlease 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 TOWNSQUARE MEDIA with a short position of Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOWNSQUARE MEDIA and Lendlease.
Diversification Opportunities for TOWNSQUARE MEDIA and Lendlease
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between TOWNSQUARE and Lendlease is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding TOWNSQUARE MEDIA INC and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group and TOWNSQUARE MEDIA 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 TOWNSQUARE MEDIA INC are associated (or correlated) with Lendlease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendlease Group has no effect on the direction of TOWNSQUARE MEDIA i.e., TOWNSQUARE MEDIA and Lendlease go up and down completely randomly.
Pair Corralation between TOWNSQUARE MEDIA and Lendlease
Assuming the 90 days trading horizon TOWNSQUARE MEDIA INC is expected to under-perform the Lendlease. In addition to that, TOWNSQUARE MEDIA is 1.02 times more volatile than Lendlease Group. It trades about -0.02 of its total potential returns per unit of risk. Lendlease Group is currently generating about 0.02 per unit of volatility. If you would invest 407.00 in Lendlease Group on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Lendlease Group or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TOWNSQUARE MEDIA INC vs. Lendlease Group
Performance |
| Timeline |
| TOWNSQUARE MEDIA INC |
| Lendlease Group |
TOWNSQUARE MEDIA and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOWNSQUARE MEDIA and Lendlease
The main advantage of trading using opposite TOWNSQUARE MEDIA and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOWNSQUARE MEDIA position performs unexpectedly, Lendlease 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 Lendlease will offset losses from the drop in Lendlease's long position.| TOWNSQUARE MEDIA vs. Apple Inc | TOWNSQUARE MEDIA vs. Apple Inc | TOWNSQUARE MEDIA vs. Apple Inc | TOWNSQUARE MEDIA vs. Apple 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 the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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