Correlation Between Lendlease and PT Global
Can any of the company-specific risk be diversified away by investing in both Lendlease and PT Global 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 PT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Group and PT Global Mediacom, you can compare the effects of market volatilities on Lendlease and PT Global 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 PT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease and PT Global.
Diversification Opportunities for Lendlease and PT Global
Modest diversification
The 3 months correlation between Lendlease and 06L is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Group and PT Global Mediacom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Global Mediacom 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 PT Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Global Mediacom has no effect on the direction of Lendlease i.e., Lendlease and PT Global go up and down completely randomly.
Pair Corralation between Lendlease and PT Global
If you would invest 406.00 in Lendlease Group on September 5, 2024 and sell it today you would earn a total of 31.00 from holding Lendlease Group or generate 7.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lendlease Group vs. PT Global Mediacom
Performance |
| Timeline |
| Lendlease Group |
| PT Global Mediacom |
Lendlease and PT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease and PT Global
The main advantage of trading using opposite Lendlease and PT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease position performs unexpectedly, PT Global 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 PT Global will offset losses from the drop in PT Global's long position.The idea behind Lendlease Group and PT Global Mediacom pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| PT Global vs. VIRGIN WINES UK | PT Global vs. Spirent Communications plc | PT Global vs. Mobilezone Holding AG | PT Global vs. Nordic Semiconductor ASA |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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