Correlation Between Lendlease and FEMALE HEALTH
Can any of the company-specific risk be diversified away by investing in both Lendlease and FEMALE HEALTH 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 FEMALE HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Group and FEMALE HEALTH, you can compare the effects of market volatilities on Lendlease and FEMALE HEALTH 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 FEMALE HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease and FEMALE HEALTH.
Diversification Opportunities for Lendlease and FEMALE HEALTH
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lendlease and FEMALE is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Group and FEMALE HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEMALE HEALTH 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 FEMALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEMALE HEALTH has no effect on the direction of Lendlease i.e., Lendlease and FEMALE HEALTH go up and down completely randomly.
Pair Corralation between Lendlease and FEMALE HEALTH
Assuming the 90 days trading horizon Lendlease Group is expected to generate 0.34 times more return on investment than FEMALE HEALTH. However, Lendlease Group is 2.97 times less risky than FEMALE HEALTH. It trades about 0.25 of its potential returns per unit of risk. FEMALE HEALTH is currently generating about 0.0 per unit of risk. If you would invest 406.00 in Lendlease Group on September 3, 2024 and sell it today you would earn a total of 32.00 from holding Lendlease Group or generate 7.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lendlease Group vs. FEMALE HEALTH
Performance |
| Timeline |
| Lendlease Group |
| FEMALE HEALTH |
Lendlease and FEMALE HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease and FEMALE HEALTH
The main advantage of trading using opposite Lendlease and FEMALE HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease position performs unexpectedly, FEMALE HEALTH 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 FEMALE HEALTH will offset losses from the drop in FEMALE HEALTH's long position.| Lendlease vs. KB HOME | Lendlease vs. Flutter Entertainment PLC | Lendlease vs. GigaMedia | Lendlease vs. PT Global Mediacom |
| FEMALE HEALTH vs. Universal Display | FEMALE HEALTH vs. SALESFORCE INC CDR | FEMALE HEALTH vs. Entravision Communications | FEMALE HEALTH vs. ULTRA CLEAN HLDGS |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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