Correlation Between Intuitive Investments and Lennar Corp
Can any of the company-specific risk be diversified away by investing in both Intuitive Investments and Lennar Corp 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 Intuitive Investments and Lennar Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Investments Group and Lennar Corp Cl, you can compare the effects of market volatilities on Intuitive Investments and Lennar Corp 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 Intuitive Investments with a short position of Lennar Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Investments and Lennar Corp.
Diversification Opportunities for Intuitive Investments and Lennar Corp
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Intuitive and Lennar is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Investments Group and Lennar Corp Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lennar Corp Cl and Intuitive Investments 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 Intuitive Investments Group are associated (or correlated) with Lennar Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lennar Corp Cl has no effect on the direction of Intuitive Investments i.e., Intuitive Investments and Lennar Corp go up and down completely randomly.
Pair Corralation between Intuitive Investments and Lennar Corp
Assuming the 90 days trading horizon Intuitive Investments Group is expected to generate 2.44 times more return on investment than Lennar Corp. However, Intuitive Investments is 2.44 times more volatile than Lennar Corp Cl. It trades about -0.01 of its potential returns per unit of risk. Lennar Corp Cl is currently generating about -0.59 per unit of risk. If you would invest 12,450 in Intuitive Investments Group on October 10, 2024 and sell it today you would lose (250.00) from holding Intuitive Investments Group or give up 2.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Intuitive Investments Group vs. Lennar Corp Cl
Performance |
| Timeline |
| Intuitive Investments |
| Lennar Corp Cl |
Intuitive Investments and Lennar Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Investments and Lennar Corp
The main advantage of trading using opposite Intuitive Investments and Lennar Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Investments position performs unexpectedly, Lennar Corp 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 Lennar Corp will offset losses from the drop in Lennar Corp's long position.| Intuitive Investments vs. Fevertree Drinks Plc | Intuitive Investments vs. Premier Foods PLC | Intuitive Investments vs. Ebro Foods | Intuitive Investments vs. Supermarket Income REIT |
| Lennar Corp vs. Gamma Communications PLC | Lennar Corp vs. Liberty Media Corp | Lennar Corp vs. Verizon Communications | Lennar Corp vs. Batm Advanced Communications |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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