Correlation Between Lendlease and OAKTRSPECLENDNEW
Can any of the company-specific risk be diversified away by investing in both Lendlease and OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Group and OAKTRSPECLENDNEW, you can compare the effects of market volatilities on Lendlease and OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease and OAKTRSPECLENDNEW.
Diversification Opportunities for Lendlease and OAKTRSPECLENDNEW
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lendlease and OAKTRSPECLENDNEW is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Group and OAKTRSPECLENDNEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OAKTRSPECLENDNEW has no effect on the direction of Lendlease i.e., Lendlease and OAKTRSPECLENDNEW go up and down completely randomly.
Pair Corralation between Lendlease and OAKTRSPECLENDNEW
Assuming the 90 days trading horizon Lendlease Group is expected to generate 1.37 times more return on investment than OAKTRSPECLENDNEW. However, Lendlease is 1.37 times more volatile than OAKTRSPECLENDNEW. It trades about 0.0 of its potential returns per unit of risk. OAKTRSPECLENDNEW is currently generating about 0.0 per unit of risk. If you would invest 470.00 in Lendlease Group on August 31, 2024 and sell it today you would lose (38.00) from holding Lendlease Group or give up 8.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lendlease Group vs. OAKTRSPECLENDNEW
Performance |
| Timeline |
| Lendlease Group |
| OAKTRSPECLENDNEW |
Lendlease and OAKTRSPECLENDNEW Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease and OAKTRSPECLENDNEW
The main advantage of trading using opposite Lendlease and OAKTRSPECLENDNEW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease position performs unexpectedly, OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW will offset losses from the drop in OAKTRSPECLENDNEW's long position.| Lendlease vs. Mizuho Financial Group | Lendlease vs. Commonwealth Bank of | Lendlease vs. CDN IMPERIAL BANK | Lendlease vs. OAKTRSPECLENDNEW |
| OAKTRSPECLENDNEW vs. Apple Inc | OAKTRSPECLENDNEW vs. Apple Inc | OAKTRSPECLENDNEW vs. Apple Inc | OAKTRSPECLENDNEW vs. Apple Inc |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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