Correlation Between Lendlease and M8 Sustainable
Can any of the company-specific risk be diversified away by investing in both Lendlease and M8 Sustainable 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 M8 Sustainable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Group and M8 Sustainable, you can compare the effects of market volatilities on Lendlease and M8 Sustainable 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 M8 Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease and M8 Sustainable.
Diversification Opportunities for Lendlease and M8 Sustainable
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lendlease and M8S is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Group and M8 Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on M8 Sustainable 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 M8 Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of M8 Sustainable has no effect on the direction of Lendlease i.e., Lendlease and M8 Sustainable go up and down completely randomly.
Pair Corralation between Lendlease and M8 Sustainable
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 | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lendlease Group vs. M8 Sustainable
Performance |
| Timeline |
| Lendlease Group |
| M8 Sustainable |
Lendlease and M8 Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease and M8 Sustainable
The main advantage of trading using opposite Lendlease and M8 Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease position performs unexpectedly, M8 Sustainable 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 M8 Sustainable will offset losses from the drop in M8 Sustainable's long position.| Lendlease vs. Tombador Iron | Lendlease vs. Aeris Environmental | Lendlease vs. Bluescope Steel | Lendlease vs. National Storage REIT |
| M8 Sustainable vs. Lendlease Group | M8 Sustainable vs. Farm Pride Foods | M8 Sustainable vs. Argo Investments | M8 Sustainable vs. Saferoads Holdings |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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