Correlation Between BRP and Lendlease Global
Can any of the company-specific risk be diversified away by investing in both BRP 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 BRP and Lendlease Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BRP Inc and Lendlease Global Commercial, you can compare the effects of market volatilities on BRP 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 BRP with a short position of Lendlease Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRP and Lendlease Global.
Diversification Opportunities for BRP and Lendlease Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BRP and Lendlease is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BRP Inc 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 BRP 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 BRP Inc 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 BRP i.e., BRP and Lendlease Global go up and down completely randomly.
Pair Corralation between BRP and Lendlease Global
If you would invest 45.00 in Lendlease Global Commercial on October 14, 2024 and sell it today you would earn a total of 0.00 from holding Lendlease Global Commercial or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BRP Inc vs. Lendlease Global Commercial
Performance |
| Timeline |
| BRP Inc |
| Lendlease Global Com |
BRP and Lendlease Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRP and Lendlease Global
The main advantage of trading using opposite BRP and Lendlease Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRP 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.The idea behind BRP Inc and Lendlease Global Commercial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Lendlease Global vs. BRP Inc | Lendlease Global vs. InfuSystems Holdings | Lendlease Global vs. Lincoln Electric Holdings | Lendlease Global vs. Hooker Furniture |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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