Correlation Between VARIOUS EATERIES and Lendlease
Can any of the company-specific risk be diversified away by investing in both VARIOUS EATERIES 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 VARIOUS EATERIES and Lendlease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VARIOUS EATERIES LS and Lendlease Group, you can compare the effects of market volatilities on VARIOUS EATERIES 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 VARIOUS EATERIES with a short position of Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of VARIOUS EATERIES and Lendlease.
Diversification Opportunities for VARIOUS EATERIES and Lendlease
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between VARIOUS and Lendlease is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding VARIOUS EATERIES LS and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group and VARIOUS EATERIES 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 VARIOUS EATERIES LS 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 VARIOUS EATERIES i.e., VARIOUS EATERIES and Lendlease go up and down completely randomly.
Pair Corralation between VARIOUS EATERIES and Lendlease
Assuming the 90 days horizon VARIOUS EATERIES is expected to generate 12.02 times less return on investment than Lendlease. In addition to that, VARIOUS EATERIES is 1.12 times more volatile than Lendlease Group. It trades about 0.01 of its total potential returns per unit of risk. Lendlease Group is currently generating about 0.1 per unit of volatility. If you would invest 407.00 in Lendlease Group on August 28, 2024 and sell it today you would earn a total of 11.00 from holding Lendlease Group or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VARIOUS EATERIES LS vs. Lendlease Group
Performance |
| Timeline |
| VARIOUS EATERIES |
| Lendlease Group |
VARIOUS EATERIES and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VARIOUS EATERIES and Lendlease
The main advantage of trading using opposite VARIOUS EATERIES and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VARIOUS EATERIES 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.| VARIOUS EATERIES vs. Seven West Media | VARIOUS EATERIES vs. Wayside Technology Group | VARIOUS EATERIES vs. Sixt Leasing SE | VARIOUS EATERIES vs. X FAB Silicon Foundries |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |