Correlation Between Lendlease and Dug Technology
Can any of the company-specific risk be diversified away by investing in both Lendlease and Dug Technology 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 Dug Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Group and Dug Technology, you can compare the effects of market volatilities on Lendlease and Dug Technology 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 Dug Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease and Dug Technology.
Diversification Opportunities for Lendlease and Dug Technology
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lendlease and Dug is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Group and Dug Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dug 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 Dug Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dug Technology has no effect on the direction of Lendlease i.e., Lendlease and Dug Technology go up and down completely randomly.
Pair Corralation between Lendlease and Dug Technology
Assuming the 90 days trading horizon Lendlease Group is expected to generate 0.43 times more return on investment than Dug Technology. However, Lendlease Group is 2.34 times less risky than Dug Technology. It trades about 0.05 of its potential returns per unit of risk. Dug Technology is currently generating about -0.44 per unit of risk. If you would invest 676.00 in Lendlease Group on August 29, 2024 and sell it today you would earn a total of 8.00 from holding Lendlease Group or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lendlease Group vs. Dug Technology
Performance |
| Timeline |
| Lendlease Group |
| Dug Technology |
Lendlease and Dug Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease and Dug Technology
The main advantage of trading using opposite Lendlease and Dug Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease position performs unexpectedly, Dug Technology 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 Dug Technology will offset losses from the drop in Dug Technology's long position.| Lendlease vs. M3 Mining | Lendlease vs. Auctus Alternative Investments | Lendlease vs. Alternative Investment Trust | Lendlease vs. K2 Asset Management |
| Dug Technology vs. Vulcan Steel | Dug Technology vs. Queste Communications | Dug Technology vs. Aristocrat Leisure | Dug Technology vs. Viva Leisure |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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