Correlation Between Lendlease and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Lendlease and Ainsworth Game 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 Lendlease and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Group and Ainsworth Game Technology, you can compare the effects of market volatilities on Lendlease and Ainsworth Game 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 Lendlease with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease and Ainsworth Game.
Diversification Opportunities for Lendlease and Ainsworth Game
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lendlease and Ainsworth is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Group and Ainsworth Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainsworth Game Technology and Lendlease 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 Lendlease Group are associated (or correlated) with Ainsworth Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ainsworth Game Technology has no effect on the direction of Lendlease i.e., Lendlease and Ainsworth Game go up and down completely randomly.
Pair Corralation between Lendlease and Ainsworth Game
Assuming the 90 days trading horizon Lendlease Group is expected to generate 0.43 times more return on investment than Ainsworth Game. However, Lendlease Group is 2.32 times less risky than Ainsworth Game. It trades about 0.08 of its potential returns per unit of risk. Ainsworth Game Technology is currently generating about -0.03 per unit of risk. If you would invest 635.00 in Lendlease Group on November 8, 2024 and sell it today you would earn a total of 11.00 from holding Lendlease Group or generate 1.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lendlease Group vs. Ainsworth Game Technology
Performance |
| Timeline |
| Lendlease Group |
| Ainsworth Game Technology |
Lendlease and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease and Ainsworth Game
The main advantage of trading using opposite Lendlease and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease position performs unexpectedly, Ainsworth Game 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 Ainsworth Game will offset losses from the drop in Ainsworth Game's long position.| Lendlease vs. Scentre Group | Lendlease vs. Vicinity Centres Re | Lendlease vs. Charter Hall Retail | Lendlease vs. Cromwell Property Group |
| Ainsworth Game vs. ChemX Materials | Ainsworth Game vs. Djerriwarrh Investments | Ainsworth Game vs. Beam Communications Holdings | Ainsworth Game vs. Navigator Global Investments |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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