Correlation Between Lendlease and AGRICULTBK HADR25
Can any of the company-specific risk be diversified away by investing in both Lendlease and AGRICULTBK HADR25 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 AGRICULTBK HADR25 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Group and AGRICULTBK HADR25 YC, you can compare the effects of market volatilities on Lendlease and AGRICULTBK HADR25 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 AGRICULTBK HADR25. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease and AGRICULTBK HADR25.
Diversification Opportunities for Lendlease and AGRICULTBK HADR25
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lendlease and AGRICULTBK is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Group and AGRICULTBK HADR25 YC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGRICULTBK HADR25 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 AGRICULTBK HADR25. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGRICULTBK HADR25 has no effect on the direction of Lendlease i.e., Lendlease and AGRICULTBK HADR25 go up and down completely randomly.
Pair Corralation between Lendlease and AGRICULTBK HADR25
Assuming the 90 days trading horizon Lendlease Group is expected to generate 0.45 times more return on investment than AGRICULTBK HADR25. However, Lendlease Group is 2.21 times less risky than AGRICULTBK HADR25. It trades about 0.09 of its potential returns per unit of risk. AGRICULTBK HADR25 YC is currently generating about -0.03 per unit of risk. If you would invest 374.00 in Lendlease Group on October 28, 2024 and sell it today you would earn a total of 7.00 from holding Lendlease Group or generate 1.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lendlease Group vs. AGRICULTBK HADR25 YC
Performance |
| Timeline |
| Lendlease Group |
| AGRICULTBK HADR25 |
Lendlease and AGRICULTBK HADR25 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease and AGRICULTBK HADR25
The main advantage of trading using opposite Lendlease and AGRICULTBK HADR25 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease position performs unexpectedly, AGRICULTBK HADR25 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 AGRICULTBK HADR25 will offset losses from the drop in AGRICULTBK HADR25's long position.| Lendlease vs. LANDSEA GREEN MANAGEMENT | Lendlease vs. APPLIED MATERIALS | Lendlease vs. The Yokohama Rubber | Lendlease vs. Perdoceo Education |
| AGRICULTBK HADR25 vs. ARISTOCRAT LEISURE | AGRICULTBK HADR25 vs. PLAYMATES TOYS | AGRICULTBK HADR25 vs. PLAY2CHILL SA ZY | AGRICULTBK HADR25 vs. Entravision Communications |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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