Correlation Between Global Ship and Lendlease
Can any of the company-specific risk be diversified away by investing in both Global Ship 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 Global Ship and Lendlease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Ship Lease and Lendlease Group, you can compare the effects of market volatilities on Global Ship 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 Global Ship with a short position of Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Ship and Lendlease.
Diversification Opportunities for Global Ship and Lendlease
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Global and Lendlease is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Global Ship Lease and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group and Global Ship 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 Global Ship Lease 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 Global Ship i.e., Global Ship and Lendlease go up and down completely randomly.
Pair Corralation between Global Ship and Lendlease
Assuming the 90 days horizon Global Ship Lease is expected to generate 0.92 times more return on investment than Lendlease. However, Global Ship Lease is 1.09 times less risky than Lendlease. It trades about 0.05 of its potential returns per unit of risk. Lendlease Group is currently generating about -0.01 per unit of risk. If you would invest 1,772 in Global Ship Lease on October 20, 2024 and sell it today you would earn a total of 392.00 from holding Global Ship Lease or generate 22.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Ship Lease vs. Lendlease Group
Performance |
| Timeline |
| Global Ship Lease |
| Lendlease Group |
Global Ship and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Ship and Lendlease
The main advantage of trading using opposite Global Ship and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Ship 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.| Global Ship vs. Yuexiu Transport Infrastructure | Global Ship vs. CN MODERN DAIRY | Global Ship vs. Lery Seafood Group | Global Ship vs. Fortescue Metals Group |
| Lendlease vs. Cal Maine Foods | Lendlease vs. NAGOYA RAILROAD | Lendlease vs. LIFEWAY FOODS | Lendlease vs. MTY Food Group |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| 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 | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |