Correlation Between LANDSEA GREEN and Lendlease
Can any of the company-specific risk be diversified away by investing in both LANDSEA GREEN 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 LANDSEA GREEN and Lendlease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LANDSEA GREEN MANAGEMENT and Lendlease Group, you can compare the effects of market volatilities on LANDSEA GREEN 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 LANDSEA GREEN with a short position of Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of LANDSEA GREEN and Lendlease.
Diversification Opportunities for LANDSEA GREEN and Lendlease
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between LANDSEA and Lendlease is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding LANDSEA GREEN MANAGEMENT and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group and LANDSEA GREEN 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 LANDSEA GREEN MANAGEMENT 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 LANDSEA GREEN i.e., LANDSEA GREEN and Lendlease go up and down completely randomly.
Pair Corralation between LANDSEA GREEN and Lendlease
Assuming the 90 days horizon LANDSEA GREEN MANAGEMENT is expected to generate 104.33 times more return on investment than Lendlease. However, LANDSEA GREEN is 104.33 times more volatile than Lendlease Group. It trades about 0.18 of its potential returns per unit of risk. Lendlease Group is currently generating about -0.07 per unit of risk. If you would invest 0.10 in LANDSEA GREEN MANAGEMENT on November 6, 2024 and sell it today you would earn a total of 4.00 from holding LANDSEA GREEN MANAGEMENT or generate 4000.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LANDSEA GREEN MANAGEMENT vs. Lendlease Group
Performance |
| Timeline |
| LANDSEA GREEN MANAGEMENT |
| Lendlease Group |
LANDSEA GREEN and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LANDSEA GREEN and Lendlease
The main advantage of trading using opposite LANDSEA GREEN and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LANDSEA GREEN 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.| LANDSEA GREEN vs. GEAR4MUSIC LS 10 | LANDSEA GREEN vs. URBAN OUTFITTERS | LANDSEA GREEN vs. Warner Music Group | LANDSEA GREEN vs. SCANSOURCE |
| Lendlease vs. SILVER BULLET DATA | Lendlease vs. Wizz Air Holdings | Lendlease vs. SOGECLAIR SA INH | Lendlease vs. DICKER DATA LTD |
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.
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