Correlation Between Lendlease and Oceania Healthcare
Can any of the company-specific risk be diversified away by investing in both Lendlease and Oceania Healthcare 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 Oceania Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Group and Oceania Healthcare, you can compare the effects of market volatilities on Lendlease and Oceania Healthcare 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 Oceania Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease and Oceania Healthcare.
Diversification Opportunities for Lendlease and Oceania Healthcare
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lendlease and Oceania is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Group and Oceania Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oceania Healthcare 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 Oceania Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oceania Healthcare has no effect on the direction of Lendlease i.e., Lendlease and Oceania Healthcare go up and down completely randomly.
Pair Corralation between Lendlease and Oceania Healthcare
Assuming the 90 days trading horizon Lendlease Group is expected to generate 0.37 times more return on investment than Oceania Healthcare. However, Lendlease Group is 2.71 times less risky than Oceania Healthcare. It trades about 0.06 of its potential returns per unit of risk. Oceania Healthcare is currently generating about -0.07 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 33.00 from holding Lendlease Group or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lendlease Group vs. Oceania Healthcare
Performance |
| Timeline |
| Lendlease Group |
| Oceania Healthcare |
Lendlease and Oceania Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease and Oceania Healthcare
The main advantage of trading using opposite Lendlease and Oceania Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease position performs unexpectedly, Oceania Healthcare 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 Oceania Healthcare will offset losses from the drop in Oceania Healthcare's long position.| Lendlease vs. Diversified United Investment | Lendlease vs. Aeon Metals | Lendlease vs. REGAL ASIAN INVESTMENTS | Lendlease vs. MFF Capital Investments |
| Oceania Healthcare vs. Readytech Holdings | Oceania Healthcare vs. Charter Hall Retail | Oceania Healthcare vs. Platinum Asset Management | Oceania Healthcare vs. Medical Developments International |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |