Correlation Between Lendlease and Tigers Realm
Can any of the company-specific risk be diversified away by investing in both Lendlease and Tigers Realm 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 Tigers Realm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Group and Tigers Realm Coal, you can compare the effects of market volatilities on Lendlease and Tigers Realm 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 Tigers Realm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease and Tigers Realm.
Diversification Opportunities for Lendlease and Tigers Realm
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lendlease and Tigers is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Group and Tigers Realm Coal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tigers Realm Coal 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 Tigers Realm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tigers Realm Coal has no effect on the direction of Lendlease i.e., Lendlease and Tigers Realm go up and down completely randomly.
Pair Corralation between Lendlease and Tigers Realm
If you would invest 677.00 in Lendlease Group on September 4, 2024 and sell it today you would earn a total of 40.00 from holding Lendlease Group or generate 5.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lendlease Group vs. Tigers Realm Coal
Performance |
| Timeline |
| Lendlease Group |
| Tigers Realm Coal |
Lendlease and Tigers Realm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease and Tigers Realm
The main advantage of trading using opposite Lendlease and Tigers Realm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease position performs unexpectedly, Tigers Realm 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 Tigers Realm will offset losses from the drop in Tigers Realm's long position.| Lendlease vs. Scentre Group | Lendlease vs. Vicinity Centres Re | Lendlease vs. Charter Hall Retail | Lendlease vs. Cromwell Property Group |
| Tigers Realm vs. Northern Star Resources | Tigers Realm vs. Evolution Mining | Tigers Realm vs. Bluescope Steel | Tigers Realm vs. Sandfire Resources NL |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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