Correlation Between Custom Truck and Lendlease Global
Can any of the company-specific risk be diversified away by investing in both Custom Truck 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 Custom Truck and Lendlease Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Custom Truck One and Lendlease Global Commercial, you can compare the effects of market volatilities on Custom Truck 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 Custom Truck with a short position of Lendlease Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Custom Truck and Lendlease Global.
Diversification Opportunities for Custom Truck and Lendlease Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Custom and Lendlease is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Custom Truck One 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 Custom Truck 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 Custom Truck One 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 Custom Truck i.e., Custom Truck and Lendlease Global go up and down completely randomly.
Pair Corralation between Custom Truck and Lendlease Global
If you would invest 388.00 in Custom Truck One on November 2, 2024 and sell it today you would earn a total of 141.00 from holding Custom Truck One or generate 36.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Custom Truck One vs. Lendlease Global Commercial
Performance |
| Timeline |
| Custom Truck One |
| Lendlease Global Com |
Custom Truck and Lendlease Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Custom Truck and Lendlease Global
The main advantage of trading using opposite Custom Truck and Lendlease Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Custom Truck 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.| Custom Truck vs. PROG Holdings | Custom Truck vs. McGrath RentCorp | Custom Truck vs. HE Equipment Services | Custom Truck vs. GATX Corporation |
| Lendlease Global vs. East Africa Metals | Lendlease Global vs. China Southern Airlines | Lendlease Global vs. Perseus Mining Limited | Lendlease Global vs. Mesa Air 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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