Correlation Between Lendlease and GRUPO ECOENER
Can any of the company-specific risk be diversified away by investing in both Lendlease and GRUPO ECOENER 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 GRUPO ECOENER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Group and GRUPO ECOENER EO, you can compare the effects of market volatilities on Lendlease and GRUPO ECOENER 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 GRUPO ECOENER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease and GRUPO ECOENER.
Diversification Opportunities for Lendlease and GRUPO ECOENER
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lendlease and GRUPO is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Group and GRUPO ECOENER EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRUPO ECOENER EO 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 GRUPO ECOENER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRUPO ECOENER EO has no effect on the direction of Lendlease i.e., Lendlease and GRUPO ECOENER go up and down completely randomly.
Pair Corralation between Lendlease and GRUPO ECOENER
Assuming the 90 days trading horizon Lendlease Group is expected to under-perform the GRUPO ECOENER. But the stock apears to be less risky and, when comparing its historical volatility, Lendlease Group is 1.53 times less risky than GRUPO ECOENER. The stock trades about -0.01 of its potential returns per unit of risk. The GRUPO ECOENER EO is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 384.00 in GRUPO ECOENER EO on November 8, 2024 and sell it today you would earn a total of 86.00 from holding GRUPO ECOENER EO or generate 22.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Lendlease Group vs. GRUPO ECOENER EO
Performance |
| Timeline |
| Lendlease Group |
| GRUPO ECOENER EO |
Lendlease and GRUPO ECOENER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease and GRUPO ECOENER
The main advantage of trading using opposite Lendlease and GRUPO ECOENER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease position performs unexpectedly, GRUPO ECOENER 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 GRUPO ECOENER will offset losses from the drop in GRUPO ECOENER's long position.| Lendlease vs. Treasury Wine Estates | Lendlease vs. VIVA WINE GROUP | Lendlease vs. Garofalo Health Care | Lendlease vs. CLEAN ENERGY FUELS |
| GRUPO ECOENER vs. Transport International Holdings | GRUPO ECOENER vs. SIEM OFFSHORE NEW | GRUPO ECOENER vs. Broadcom | GRUPO ECOENER vs. Broadwind |
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 CEOs Directory module to screen CEOs from public companies around the world.
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