Correlation Between Lendlease and Anax Metals
Can any of the company-specific risk be diversified away by investing in both Lendlease and Anax Metals 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 Anax Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Group and Anax Metals, you can compare the effects of market volatilities on Lendlease and Anax Metals 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 Anax Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease and Anax Metals.
Diversification Opportunities for Lendlease and Anax Metals
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lendlease and Anax is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Group and Anax Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anax Metals 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 Anax Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anax Metals has no effect on the direction of Lendlease i.e., Lendlease and Anax Metals go up and down completely randomly.
Pair Corralation between Lendlease and Anax Metals
Assuming the 90 days trading horizon Lendlease Group is expected to generate 0.27 times more return on investment than Anax Metals. However, Lendlease Group is 3.66 times less risky than Anax Metals. It trades about 0.11 of its potential returns per unit of risk. Anax Metals is currently generating about -0.15 per unit of risk. 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lendlease Group vs. Anax Metals
Performance |
| Timeline |
| Lendlease Group |
| Anax Metals |
Lendlease and Anax Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease and Anax Metals
The main advantage of trading using opposite Lendlease and Anax Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease position performs unexpectedly, Anax Metals 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 Anax Metals will offset losses from the drop in Anax Metals' long position.| Lendlease vs. Centaurus Metals | Lendlease vs. Truscott Mining Corp | Lendlease vs. Alto Metals | Lendlease vs. Actinogen Medical |
| Anax Metals vs. Truscott Mining Corp | Anax Metals vs. Richmond Vanadium Technology | Anax Metals vs. Green Technology Metals | Anax Metals vs. Ainsworth Game Technology |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |