Correlation Between Garda Diversified and Lendlease
Can any of the company-specific risk be diversified away by investing in both Garda Diversified 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 Garda Diversified and Lendlease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Garda Diversified Ppty and Lendlease Group, you can compare the effects of market volatilities on Garda Diversified 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 Garda Diversified with a short position of Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garda Diversified and Lendlease.
Diversification Opportunities for Garda Diversified and Lendlease
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Garda and Lendlease is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Garda Diversified Ppty and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group and Garda Diversified 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 Garda Diversified Ppty 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 Garda Diversified i.e., Garda Diversified and Lendlease go up and down completely randomly.
Pair Corralation between Garda Diversified and Lendlease
Assuming the 90 days trading horizon Garda Diversified is expected to generate 3.16 times less return on investment than Lendlease. But when comparing it to its historical volatility, Garda Diversified Ppty is 1.12 times less risky than Lendlease. It trades about 0.04 of its potential returns per unit of risk. Lendlease Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 581.00 in Lendlease Group on September 1, 2024 and sell it today you would earn a total of 135.00 from holding Lendlease Group or generate 23.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garda Diversified Ppty vs. Lendlease Group
Performance |
| Timeline |
| Garda Diversified Ppty |
| Lendlease Group |
Garda Diversified and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garda Diversified and Lendlease
The main advantage of trading using opposite Garda Diversified and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garda Diversified 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.| Garda Diversified vs. Truscott Mining Corp | Garda Diversified vs. Metro Mining | Garda Diversified vs. Aspire Mining | Garda Diversified vs. Queste Communications |
| Lendlease vs. Centaurus Metals | Lendlease vs. Truscott Mining Corp | Lendlease vs. Alto Metals | Lendlease vs. Actinogen Medical |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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