Correlation Between Yuexiu Transport and Lendlease
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport 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 Yuexiu Transport and Lendlease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yuexiu Transport Infrastructure and Lendlease Group, you can compare the effects of market volatilities on Yuexiu Transport 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 Yuexiu Transport with a short position of Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Lendlease.
Diversification Opportunities for Yuexiu Transport and Lendlease
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yuexiu and Lendlease is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group and Yuexiu Transport 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 Yuexiu Transport Infrastructure 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 Yuexiu Transport i.e., Yuexiu Transport and Lendlease go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Lendlease
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to under-perform the Lendlease. In addition to that, Yuexiu Transport is 2.15 times more volatile than Lendlease Group. It trades about -0.13 of its total potential returns per unit of risk. Lendlease Group is currently generating about 0.09 per unit of volatility. If you would invest 374.00 in Lendlease Group on October 28, 2024 and sell it today you would earn a total of 7.00 from holding Lendlease Group or generate 1.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Lendlease Group
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Lendlease Group |
Yuexiu Transport and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Lendlease
The main advantage of trading using opposite Yuexiu Transport and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport 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.| Yuexiu Transport vs. Getlink SE | Yuexiu Transport vs. Jiangsu Expressway | Yuexiu Transport vs. Arcosa Inc | Yuexiu Transport vs. Superior Plus Corp |
| Lendlease vs. LANDSEA GREEN MANAGEMENT | Lendlease vs. APPLIED MATERIALS | Lendlease vs. The Yokohama Rubber | Lendlease vs. Perdoceo Education |
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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