Correlation Between SPASX Dividend and Lendlease
Can any of the company-specific risk be diversified away by investing in both SPASX Dividend 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 SPASX Dividend and Lendlease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPASX Dividend Opportunities and Lendlease Group, you can compare the effects of market volatilities on SPASX Dividend 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 SPASX Dividend with a short position of Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPASX Dividend and Lendlease.
Diversification Opportunities for SPASX Dividend and Lendlease
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SPASX and Lendlease is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding SPASX Dividend Opportunities and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group and SPASX Dividend 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 SPASX Dividend Opportunities 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 SPASX Dividend i.e., SPASX Dividend and Lendlease go up and down completely randomly.
Pair Corralation between SPASX Dividend and Lendlease
Assuming the 90 days trading horizon SPASX Dividend Opportunities is expected to generate 0.38 times more return on investment than Lendlease. However, SPASX Dividend Opportunities is 2.62 times less risky than Lendlease. It trades about 0.03 of its potential returns per unit of risk. Lendlease Group is currently generating about -0.01 per unit of risk. If you would invest 156,960 in SPASX Dividend Opportunities on August 28, 2024 and sell it today you would earn a total of 12,740 from holding SPASX Dividend Opportunities or generate 8.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPASX Dividend Opportunities vs. Lendlease Group
Performance |
| Timeline |
SPASX Dividend and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
SPASX Dividend Opportunities
Pair trading matchups for SPASX Dividend
Lendlease Group
Pair trading matchups for Lendlease
Pair Trading with SPASX Dividend and Lendlease
The main advantage of trading using opposite SPASX Dividend and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPASX Dividend 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.| SPASX Dividend vs. Red Hill Iron | SPASX Dividend vs. Ainsworth Game Technology | SPASX Dividend vs. Champion Iron | SPASX Dividend vs. Autosports Group |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |