Correlation Between Lendlease and Suncorp Group
Can any of the company-specific risk be diversified away by investing in both Lendlease and Suncorp Group 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 Suncorp Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Group and Suncorp Group Ltd, you can compare the effects of market volatilities on Lendlease and Suncorp Group 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 Suncorp Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease and Suncorp Group.
Diversification Opportunities for Lendlease and Suncorp Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lendlease and Suncorp is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Group and Suncorp Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suncorp 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 Suncorp Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suncorp Group has no effect on the direction of Lendlease i.e., Lendlease and Suncorp Group go up and down completely randomly.
Pair Corralation between Lendlease and Suncorp Group
If you would invest 685.00 in Lendlease Group on September 12, 2024 and sell it today you would lose (3.00) from holding Lendlease Group or give up 0.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lendlease Group vs. Suncorp Group Ltd
Performance |
| Timeline |
| Lendlease Group |
| Suncorp Group |
Lendlease and Suncorp Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease and Suncorp Group
The main advantage of trading using opposite Lendlease and Suncorp Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease position performs unexpectedly, Suncorp Group 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 Suncorp Group will offset losses from the drop in Suncorp Group's long position.| Lendlease vs. Spirit Telecom | Lendlease vs. Alto Metals | Lendlease vs. Embark Education Group | Lendlease vs. Charter Hall Retail |
| Suncorp Group vs. Finexia Financial Group | Suncorp Group vs. Step One Clothing | Suncorp Group vs. Perpetual Credit Income | Suncorp Group vs. Kkr Credit Income |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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