Correlation Between Lendlease and Unibail Rodamco
Can any of the company-specific risk be diversified away by investing in both Lendlease and Unibail Rodamco 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 Unibail Rodamco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Group and Unibail Rodamco Westfield SE, you can compare the effects of market volatilities on Lendlease and Unibail Rodamco 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 Unibail Rodamco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease and Unibail Rodamco.
Diversification Opportunities for Lendlease and Unibail Rodamco
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lendlease and Unibail is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Group and Unibail Rodamco Westfield SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unibail Rodamco West 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 Unibail Rodamco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unibail Rodamco West has no effect on the direction of Lendlease i.e., Lendlease and Unibail Rodamco go up and down completely randomly.
Pair Corralation between Lendlease and Unibail Rodamco
Assuming the 90 days trading horizon Lendlease Group is expected to under-perform the Unibail Rodamco. But the stock apears to be less risky and, when comparing its historical volatility, Lendlease Group is 1.13 times less risky than Unibail Rodamco. The stock trades about -0.1 of its potential returns per unit of risk. The Unibail Rodamco Westfield SE is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 651.00 in Unibail Rodamco Westfield SE on November 29, 2024 and sell it today you would earn a total of 37.00 from holding Unibail Rodamco Westfield SE or generate 5.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lendlease Group vs. Unibail Rodamco Westfield SE
Performance |
| Timeline |
| Lendlease Group |
| Unibail Rodamco West |
Lendlease and Unibail Rodamco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease and Unibail Rodamco
The main advantage of trading using opposite Lendlease and Unibail Rodamco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease position performs unexpectedly, Unibail Rodamco 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 Unibail Rodamco will offset losses from the drop in Unibail Rodamco's long position.| Lendlease vs. Oceania Healthcare | Lendlease vs. EVE Health Group | Lendlease vs. Andean Silver Limited | Lendlease vs. Aspire Mining |
| Unibail Rodamco vs. Hutchison Telecommunications | Unibail Rodamco vs. Iron Road | Unibail Rodamco vs. Super Retail Group | Unibail Rodamco vs. Embark Education Group |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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