Correlation Between Black Hills and Lendlease Global
Can any of the company-specific risk be diversified away by investing in both Black Hills 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 Black Hills and Lendlease Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Black Hills and Lendlease Global Commercial, you can compare the effects of market volatilities on Black Hills 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 Black Hills with a short position of Lendlease Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Black Hills and Lendlease Global.
Diversification Opportunities for Black Hills and Lendlease Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Black and Lendlease is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Black Hills 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 Black Hills 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 Black Hills 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 Black Hills i.e., Black Hills and Lendlease Global go up and down completely randomly.
Pair Corralation between Black Hills and Lendlease Global
Considering the 90-day investment horizon Black Hills is expected to generate 2.98 times less return on investment than Lendlease Global. In addition to that, Black Hills is 4.54 times more volatile than Lendlease Global Commercial. It trades about 0.01 of its total potential returns per unit of risk. Lendlease Global Commercial is currently generating about 0.09 per unit of volatility. If you would invest 41.00 in Lendlease Global Commercial on August 30, 2024 and sell it today you would earn a total of 4.00 from holding Lendlease Global Commercial or generate 9.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 72.98% |
| Values | Daily Returns |
Black Hills vs. Lendlease Global Commercial
Performance |
| Timeline |
| Black Hills |
| Lendlease Global Com |
Black Hills and Lendlease Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Black Hills and Lendlease Global
The main advantage of trading using opposite Black Hills and Lendlease Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Black Hills 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.| Black Hills vs. NorthWestern | Black Hills vs. Avista | Black Hills vs. Otter Tail | Black Hills vs. Companhia Paranaense de |
| Lendlease Global vs. FiscalNote Holdings | Lendlease Global vs. Zhihu Inc ADR | Lendlease Global vs. Kaltura | Lendlease Global vs. Playtech plc |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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