Correlation Between Lendlease and Land Homes
Can any of the company-specific risk be diversified away by investing in both Lendlease and Land Homes 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 Land Homes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Group and Land Homes Group, you can compare the effects of market volatilities on Lendlease and Land Homes 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 Land Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease and Land Homes.
Diversification Opportunities for Lendlease and Land Homes
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lendlease and Land is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Group and Land Homes Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Land Homes Group 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 Land Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Land Homes Group has no effect on the direction of Lendlease i.e., Lendlease and Land Homes go up and down completely randomly.
Pair Corralation between Lendlease and Land Homes
Assuming the 90 days trading horizon Lendlease Group is expected to generate 2.37 times more return on investment than Land Homes. However, Lendlease is 2.37 times more volatile than Land Homes Group. It trades about -0.01 of its potential returns per unit of risk. Land Homes Group is currently generating about -0.06 per unit of risk. If you would invest 708.00 in Lendlease Group on November 8, 2024 and sell it today you would lose (51.00) from holding Lendlease Group or give up 7.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lendlease Group vs. Land Homes Group
Performance |
| Timeline |
| Lendlease Group |
| Land Homes Group |
Lendlease and Land Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease and Land Homes
The main advantage of trading using opposite Lendlease and Land Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease position performs unexpectedly, Land Homes 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 Land Homes will offset losses from the drop in Land Homes' long position.| Lendlease vs. Scentre Group | Lendlease vs. Vicinity Centres Re | Lendlease vs. Charter Hall Retail | Lendlease vs. Cromwell Property Group |
| Land Homes vs. Duketon Mining | Land Homes vs. MetalsGrove Mining | Land Homes vs. Hotel Property Investments | Land Homes vs. Pinnacle Investment 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 CEOs Directory module to screen CEOs from public companies around the world.
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