Correlation Between GREENX METALS and Lendlease
Can any of the company-specific risk be diversified away by investing in both GREENX METALS 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 GREENX METALS and Lendlease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GREENX METALS LTD and Lendlease Group, you can compare the effects of market volatilities on GREENX METALS 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 GREENX METALS with a short position of Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Lendlease.
Diversification Opportunities for GREENX METALS and Lendlease
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GREENX and Lendlease is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group and GREENX METALS 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 GREENX METALS LTD 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 GREENX METALS i.e., GREENX METALS and Lendlease go up and down completely randomly.
Pair Corralation between GREENX METALS and Lendlease
Assuming the 90 days trading horizon GREENX METALS LTD is expected to generate 2.3 times more return on investment than Lendlease. However, GREENX METALS is 2.3 times more volatile than Lendlease Group. It trades about 0.0 of its potential returns per unit of risk. Lendlease Group is currently generating about 0.0 per unit of risk. If you would invest 58.00 in GREENX METALS LTD on September 12, 2024 and sell it today you would lose (17.00) from holding GREENX METALS LTD or give up 29.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. Lendlease Group
Performance |
| Timeline |
| GREENX METALS LTD |
| Lendlease Group |
GREENX METALS and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Lendlease
The main advantage of trading using opposite GREENX METALS and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS 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.| GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. SIVERS SEMICONDUCTORS AB | GREENX METALS vs. Norsk Hydro ASA | GREENX METALS vs. Reliance Steel Aluminum |
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 Stocks Directory module to find actively traded stocks across global markets.
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