Correlation Between Lendlease and Ora Banda
Can any of the company-specific risk be diversified away by investing in both Lendlease and Ora Banda 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 Ora Banda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Group and Ora Banda Mining, you can compare the effects of market volatilities on Lendlease and Ora Banda 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 Ora Banda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease and Ora Banda.
Diversification Opportunities for Lendlease and Ora Banda
Very good diversification
The 3 months correlation between Lendlease and Ora is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Group and Ora Banda Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ora Banda Mining 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 Ora Banda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ora Banda Mining has no effect on the direction of Lendlease i.e., Lendlease and Ora Banda go up and down completely randomly.
Pair Corralation between Lendlease and Ora Banda
Assuming the 90 days trading horizon Lendlease Group is expected to generate 0.32 times more return on investment than Ora Banda. However, Lendlease Group is 3.09 times less risky than Ora Banda. It trades about 0.16 of its potential returns per unit of risk. Ora Banda Mining is currently generating about -0.26 per unit of risk. If you would invest 676.00 in Lendlease Group on August 30, 2024 and sell it today you would earn a total of 35.00 from holding Lendlease Group or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lendlease Group vs. Ora Banda Mining
Performance |
| Timeline |
| Lendlease Group |
| Ora Banda Mining |
Lendlease and Ora Banda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease and Ora Banda
The main advantage of trading using opposite Lendlease and Ora Banda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease position performs unexpectedly, Ora Banda 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 Ora Banda will offset losses from the drop in Ora Banda's long position.| Lendlease vs. Kingsrose Mining | Lendlease vs. Flagship Investments | Lendlease vs. Medical Developments International | Lendlease vs. Nova Eye Medical |
| Ora Banda vs. Hutchison Telecommunications | Ora Banda vs. Hawsons Iron | Ora Banda vs. Mount Gibson Iron | Ora Banda vs. Platinum Asia Investments |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| CEOs Directory Screen CEOs from public companies around the world |