Correlation Between Lendlease and Australian Dollar
Can any of the company-specific risk be diversified away by investing in both Lendlease and Australian Dollar 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 Australian Dollar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Group and Australian Dollar Currency, you can compare the effects of market volatilities on Lendlease and Australian Dollar 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 Australian Dollar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease and Australian Dollar.
Diversification Opportunities for Lendlease and Australian Dollar
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lendlease and Australian is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Group and Australian Dollar Currency in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Australian Dollar 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 Australian Dollar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Australian Dollar has no effect on the direction of Lendlease i.e., Lendlease and Australian Dollar go up and down completely randomly.
Pair Corralation between Lendlease and Australian Dollar
Assuming the 90 days trading horizon Lendlease Group is expected to generate 6.03 times more return on investment than Australian Dollar. However, Lendlease is 6.03 times more volatile than Australian Dollar Currency. It trades about 0.04 of its potential returns per unit of risk. Australian Dollar Currency is currently generating about -0.38 per unit of risk. If you would invest 670.00 in Lendlease Group on September 13, 2024 and sell it today you would earn a total of 9.00 from holding Lendlease Group or generate 1.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lendlease Group vs. Australian Dollar Currency
Performance |
| Timeline |
Lendlease and Australian Dollar Volatility Contrast
Predicted Return Density |
| Returns |
Lendlease Group
Pair trading matchups for Lendlease
Australian Dollar Currency
Pair trading matchups for Australian Dollar
Pair Trading with Lendlease and Australian Dollar
The main advantage of trading using opposite Lendlease and Australian Dollar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease position performs unexpectedly, Australian Dollar 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 Australian Dollar will offset losses from the drop in Australian Dollar's long position.| Lendlease vs. Tombador Iron | Lendlease vs. Aeris Environmental | Lendlease vs. Bluescope Steel | Lendlease vs. National Storage REIT |
| Australian Dollar vs. Black Rock Mining | Australian Dollar vs. Perseus Mining | Australian Dollar vs. Treasury Wine Estates | Australian Dollar vs. Platinum Asset Management |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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