Correlation Between Lendlease and ALBIS LEASING
Can any of the company-specific risk be diversified away by investing in both Lendlease and ALBIS LEASING 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 ALBIS LEASING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Group and ALBIS LEASING AG, you can compare the effects of market volatilities on Lendlease and ALBIS LEASING 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 ALBIS LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease and ALBIS LEASING.
Diversification Opportunities for Lendlease and ALBIS LEASING
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lendlease and ALBIS is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Group and ALBIS LEASING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALBIS LEASING AG 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 ALBIS LEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALBIS LEASING AG has no effect on the direction of Lendlease i.e., Lendlease and ALBIS LEASING go up and down completely randomly.
Pair Corralation between Lendlease and ALBIS LEASING
Assuming the 90 days trading horizon Lendlease Group is expected to generate 0.95 times more return on investment than ALBIS LEASING. However, Lendlease Group is 1.05 times less risky than ALBIS LEASING. It trades about 0.13 of its potential returns per unit of risk. ALBIS LEASING AG is currently generating about -0.08 per unit of risk. If you would invest 368.00 in Lendlease Group on October 23, 2024 and sell it today you would earn a total of 8.00 from holding Lendlease Group or generate 2.17% 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. ALBIS LEASING AG
Performance |
| Timeline |
| Lendlease Group |
| ALBIS LEASING AG |
Lendlease and ALBIS LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease and ALBIS LEASING
The main advantage of trading using opposite Lendlease and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease position performs unexpectedly, ALBIS LEASING 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 ALBIS LEASING will offset losses from the drop in ALBIS LEASING's long position.| Lendlease vs. BOSTON BEER A | Lendlease vs. Tsingtao Brewery | Lendlease vs. National Beverage Corp | Lendlease vs. GALENA MINING LTD |
| ALBIS LEASING vs. Wyndham Hotels Resorts | ALBIS LEASING vs. TOWNSQUARE MEDIA INC | ALBIS LEASING vs. Flutter Entertainment PLC | ALBIS LEASING vs. Sunstone Hotel Investors |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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