Correlation Between JLF INVESTMENT and Lendlease
Can any of the company-specific risk be diversified away by investing in both JLF INVESTMENT 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 JLF INVESTMENT and Lendlease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JLF INVESTMENT and Lendlease Group, you can compare the effects of market volatilities on JLF INVESTMENT 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 JLF INVESTMENT with a short position of Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLF INVESTMENT and Lendlease.
Diversification Opportunities for JLF INVESTMENT and Lendlease
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JLF and Lendlease is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JLF INVESTMENT and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group and JLF INVESTMENT 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 JLF INVESTMENT 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 JLF INVESTMENT i.e., JLF INVESTMENT and Lendlease go up and down completely randomly.
Pair Corralation between JLF INVESTMENT and Lendlease
If you would invest 378.00 in Lendlease Group on November 5, 2024 and sell it today you would earn a total of 8.00 from holding Lendlease Group or generate 2.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JLF INVESTMENT vs. Lendlease Group
Performance |
| Timeline |
| JLF INVESTMENT |
| Lendlease Group |
JLF INVESTMENT and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLF INVESTMENT and Lendlease
The main advantage of trading using opposite JLF INVESTMENT and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLF INVESTMENT 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.| JLF INVESTMENT vs. EPSILON HEALTHCARE LTD | JLF INVESTMENT vs. Wenzhou Kangning Hospital | JLF INVESTMENT vs. Universal Health Realty | JLF INVESTMENT vs. ULTRA CLEAN HLDGS |
| Lendlease vs. QBE Insurance Group | Lendlease vs. Taiwan Semiconductor Manufacturing | Lendlease vs. MagnaChip Semiconductor Corp | Lendlease vs. UNIQA INSURANCE GR |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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