Correlation Between Lendlease and AM EAGLE
Can any of the company-specific risk be diversified away by investing in both Lendlease and AM EAGLE 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 AM EAGLE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Group and AM EAGLE OUTFITTERS, you can compare the effects of market volatilities on Lendlease and AM EAGLE 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 AM EAGLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease and AM EAGLE.
Diversification Opportunities for Lendlease and AM EAGLE
Weak diversification
The 3 months correlation between Lendlease and AFG is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Group and AM EAGLE OUTFITTERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AM EAGLE OUTFITTERS 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 AM EAGLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AM EAGLE OUTFITTERS has no effect on the direction of Lendlease i.e., Lendlease and AM EAGLE go up and down completely randomly.
Pair Corralation between Lendlease and AM EAGLE
Assuming the 90 days trading horizon Lendlease Group is expected to generate 0.69 times more return on investment than AM EAGLE. However, Lendlease Group is 1.44 times less risky than AM EAGLE. It trades about 0.11 of its potential returns per unit of risk. AM EAGLE OUTFITTERS is currently generating about -0.02 per unit of risk. If you would invest 348.00 in Lendlease Group on August 31, 2024 and sell it today you would earn a total of 84.00 from holding Lendlease Group or generate 24.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.23% |
| Values | Daily Returns |
Lendlease Group vs. AM EAGLE OUTFITTERS
Performance |
| Timeline |
| Lendlease Group |
| AM EAGLE OUTFITTERS |
Lendlease and AM EAGLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease and AM EAGLE
The main advantage of trading using opposite Lendlease and AM EAGLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease position performs unexpectedly, AM EAGLE 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 AM EAGLE will offset losses from the drop in AM EAGLE's long position.| Lendlease vs. Mizuho Financial Group | Lendlease vs. Commonwealth Bank of | Lendlease vs. CDN IMPERIAL BANK | Lendlease vs. OAKTRSPECLENDNEW |
| AM EAGLE vs. Gaztransport Technigaz SA | AM EAGLE vs. Zoom Video Communications | AM EAGLE vs. BII Railway Transportation | AM EAGLE vs. Warner Music 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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