Correlation Between Cass Information and Lendlease
Can any of the company-specific risk be diversified away by investing in both Cass Information 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 Cass Information and Lendlease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cass Information Systems and Lendlease Group, you can compare the effects of market volatilities on Cass Information 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 Cass Information with a short position of Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cass Information and Lendlease.
Diversification Opportunities for Cass Information and Lendlease
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cass and Lendlease is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Cass Information Systems and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group and Cass Information 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 Cass Information Systems 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 Cass Information i.e., Cass Information and Lendlease go up and down completely randomly.
Pair Corralation between Cass Information and Lendlease
Assuming the 90 days horizon Cass Information Systems is expected to generate 1.36 times more return on investment than Lendlease. However, Cass Information is 1.36 times more volatile than Lendlease Group. It trades about 0.24 of its potential returns per unit of risk. Lendlease Group is currently generating about 0.29 per unit of risk. If you would invest 3,800 in Cass Information Systems on September 2, 2024 and sell it today you would earn a total of 400.00 from holding Cass Information Systems or generate 10.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cass Information Systems vs. Lendlease Group
Performance |
| Timeline |
| Cass Information Systems |
| Lendlease Group |
Cass Information and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cass Information and Lendlease
The main advantage of trading using opposite Cass Information and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cass Information 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.| Cass Information vs. Superior Plus Corp | Cass Information vs. NMI Holdings | Cass Information vs. Origin Agritech | Cass Information vs. SIVERS SEMICONDUCTORS AB |
| Lendlease vs. FARO Technologies | Lendlease vs. Cass Information Systems | Lendlease vs. Hyrican Informationssysteme Aktiengesellschaft | Lendlease vs. Automatic Data Processing |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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