Correlation Between Casio Computer and Lendlease
Can any of the company-specific risk be diversified away by investing in both Casio Computer 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 Casio Computer and Lendlease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Casio Computer CoLtd and Lendlease Group, you can compare the effects of market volatilities on Casio Computer 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 Casio Computer with a short position of Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casio Computer and Lendlease.
Diversification Opportunities for Casio Computer and Lendlease
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Casio and Lendlease is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Casio Computer CoLtd and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group and Casio Computer 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 Casio Computer CoLtd 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 Casio Computer i.e., Casio Computer and Lendlease go up and down completely randomly.
Pair Corralation between Casio Computer and Lendlease
Assuming the 90 days trading horizon Casio Computer CoLtd is expected to generate 0.8 times more return on investment than Lendlease. However, Casio Computer CoLtd is 1.25 times less risky than Lendlease. It trades about 0.06 of its potential returns per unit of risk. Lendlease Group is currently generating about 0.05 per unit of risk. If you would invest 702.00 in Casio Computer CoLtd on October 30, 2024 and sell it today you would earn a total of 84.00 from holding Casio Computer CoLtd or generate 11.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Casio Computer CoLtd vs. Lendlease Group
Performance |
| Timeline |
| Casio Computer CoLtd |
| Lendlease Group |
Casio Computer and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Casio Computer and Lendlease
The main advantage of trading using opposite Casio Computer and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Casio Computer 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.| Casio Computer vs. Apple Inc | Casio Computer vs. Apple Inc | Casio Computer vs. Samsung Electronics Co | Casio Computer vs. Samsung Electronics Co |
| Lendlease vs. Hyatt Hotels | Lendlease vs. MUTUIONLINE | Lendlease vs. Playa Hotels Resorts | Lendlease vs. InterContinental Hotels Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |