Correlation Between Auctus Alternative and Lendlease
Can any of the company-specific risk be diversified away by investing in both Auctus Alternative 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 Auctus Alternative and Lendlease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auctus Alternative Investments and Lendlease Group, you can compare the effects of market volatilities on Auctus Alternative 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 Auctus Alternative with a short position of Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auctus Alternative and Lendlease.
Diversification Opportunities for Auctus Alternative and Lendlease
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Auctus and Lendlease is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Auctus Alternative Investments and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group and Auctus Alternative 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 Auctus Alternative Investments 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 Auctus Alternative i.e., Auctus Alternative and Lendlease go up and down completely randomly.
Pair Corralation between Auctus Alternative and Lendlease
Assuming the 90 days trading horizon Auctus Alternative is expected to generate 8.03 times less return on investment than Lendlease. In addition to that, Auctus Alternative is 2.52 times more volatile than Lendlease Group. It trades about 0.0 of its total potential returns per unit of risk. Lendlease Group is currently generating about 0.08 per unit of volatility. If you would invest 590.00 in Lendlease Group on August 28, 2024 and sell it today you would earn a total of 86.00 from holding Lendlease Group or generate 14.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auctus Alternative Investments vs. Lendlease Group
Performance |
| Timeline |
| Auctus Alternative |
| Lendlease Group |
Auctus Alternative and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auctus Alternative and Lendlease
The main advantage of trading using opposite Auctus Alternative and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auctus Alternative 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.| Auctus Alternative vs. National Australia Bank | Auctus Alternative vs. National Australia Bank | Auctus Alternative vs. Westpac Banking | Auctus Alternative vs. National Australia Bank |
| Lendlease vs. M3 Mining | Lendlease vs. Auctus Alternative Investments | Lendlease vs. Alternative Investment Trust | Lendlease vs. K2 Asset Management |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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