Correlation Between Aptiv PLC and Lendlease Global
Can any of the company-specific risk be diversified away by investing in both Aptiv PLC and Lendlease Global 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 Aptiv PLC and Lendlease Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aptiv PLC and Lendlease Global Commercial, you can compare the effects of market volatilities on Aptiv PLC and Lendlease Global 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 Aptiv PLC with a short position of Lendlease Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptiv PLC and Lendlease Global.
Diversification Opportunities for Aptiv PLC and Lendlease Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aptiv and Lendlease is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aptiv PLC and Lendlease Global Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Global Com and Aptiv PLC 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 Aptiv PLC are associated (or correlated) with Lendlease Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendlease Global Com has no effect on the direction of Aptiv PLC i.e., Aptiv PLC and Lendlease Global go up and down completely randomly.
Pair Corralation between Aptiv PLC and Lendlease Global
If you would invest 5,701 in Aptiv PLC on October 20, 2024 and sell it today you would earn a total of 415.00 from holding Aptiv PLC or generate 7.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aptiv PLC vs. Lendlease Global Commercial
Performance |
| Timeline |
| Aptiv PLC |
| Lendlease Global Com |
Aptiv PLC and Lendlease Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptiv PLC and Lendlease Global
The main advantage of trading using opposite Aptiv PLC and Lendlease Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptiv PLC position performs unexpectedly, Lendlease Global 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 Global will offset losses from the drop in Lendlease Global's long position.| Aptiv PLC vs. Allison Transmission Holdings | Aptiv PLC vs. LKQ Corporation | Aptiv PLC vs. Lear Corporation | Aptiv PLC vs. Magna International |
| Lendlease Global vs. Kaiser Aluminum | Lendlease Global vs. Robix Environmental Technologies | Lendlease Global vs. Viemed Healthcare | Lendlease Global vs. Nippon Steel Corp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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