Correlation Between ANGANG STEEL and Lendlease
Can any of the company-specific risk be diversified away by investing in both ANGANG STEEL 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 ANGANG STEEL and Lendlease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANGANG STEEL H and Lendlease Group, you can compare the effects of market volatilities on ANGANG STEEL 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 ANGANG STEEL with a short position of Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGANG STEEL and Lendlease.
Diversification Opportunities for ANGANG STEEL and Lendlease
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ANGANG and Lendlease is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding ANGANG STEEL H and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group and ANGANG STEEL 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 ANGANG STEEL H 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 ANGANG STEEL i.e., ANGANG STEEL and Lendlease go up and down completely randomly.
Pair Corralation between ANGANG STEEL and Lendlease
Assuming the 90 days trading horizon ANGANG STEEL H is expected to under-perform the Lendlease. In addition to that, ANGANG STEEL is 2.84 times more volatile than Lendlease Group. It trades about -0.09 of its total potential returns per unit of risk. Lendlease Group is currently generating about 0.16 per unit of volatility. If you would invest 365.00 in Lendlease Group on October 20, 2024 and sell it today you would earn a total of 11.00 from holding Lendlease Group or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANGANG STEEL H vs. Lendlease Group
Performance |
| Timeline |
| ANGANG STEEL H |
| Lendlease Group |
ANGANG STEEL and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGANG STEEL and Lendlease
The main advantage of trading using opposite ANGANG STEEL and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGANG STEEL 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.| ANGANG STEEL vs. Comba Telecom Systems | ANGANG STEEL vs. Shenandoah Telecommunications | ANGANG STEEL vs. TELECOM ITALIA | ANGANG STEEL vs. MOLSON RS BEVERAGE |
| Lendlease vs. Westinghouse Air Brake | Lendlease vs. Wizz Air Holdings | Lendlease vs. GRENKELEASING Dusseldorf | Lendlease vs. WIZZ AIR HLDGUNSPADR4 |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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