Correlation Between FRACTAL GAMING and Lendlease
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING 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 FRACTAL GAMING and Lendlease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FRACTAL GAMING GROUP and Lendlease Group, you can compare the effects of market volatilities on FRACTAL GAMING 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 FRACTAL GAMING with a short position of Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and Lendlease.
Diversification Opportunities for FRACTAL GAMING and Lendlease
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FRACTAL and Lendlease is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group and FRACTAL GAMING 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 FRACTAL GAMING GROUP 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 FRACTAL GAMING i.e., FRACTAL GAMING and Lendlease go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and Lendlease
Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to under-perform the Lendlease. In addition to that, FRACTAL GAMING is 1.49 times more volatile than Lendlease Group. It trades about -0.07 of its total potential returns per unit of risk. Lendlease Group is currently generating about 0.11 per unit of volatility. If you would invest 350.00 in Lendlease Group on September 3, 2024 and sell it today you would earn a total of 88.00 from holding Lendlease Group or generate 25.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FRACTAL GAMING GROUP vs. Lendlease Group
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| Lendlease Group |
FRACTAL GAMING and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and Lendlease
The main advantage of trading using opposite FRACTAL GAMING and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING 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.| FRACTAL GAMING vs. H FARM SPA | FRACTAL GAMING vs. STORE ELECTRONIC | FRACTAL GAMING vs. ELECTRONIC ARTS | FRACTAL GAMING vs. DAIRY FARM INTL |
| Lendlease vs. KB HOME | Lendlease vs. Flutter Entertainment PLC | Lendlease vs. GigaMedia | Lendlease vs. PT Global Mediacom |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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