Correlation Between Lendlease and NEO PERFORMMAT
Can any of the company-specific risk be diversified away by investing in both Lendlease and NEO PERFORMMAT 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 NEO PERFORMMAT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Group and NEO PERFORMMAT, you can compare the effects of market volatilities on Lendlease and NEO PERFORMMAT 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 NEO PERFORMMAT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease and NEO PERFORMMAT.
Diversification Opportunities for Lendlease and NEO PERFORMMAT
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lendlease and NEO is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Group and NEO PERFORMMAT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEO PERFORMMAT 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 NEO PERFORMMAT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEO PERFORMMAT has no effect on the direction of Lendlease i.e., Lendlease and NEO PERFORMMAT go up and down completely randomly.
Pair Corralation between Lendlease and NEO PERFORMMAT
Assuming the 90 days trading horizon Lendlease Group is expected to under-perform the NEO PERFORMMAT. In addition to that, Lendlease is 1.54 times more volatile than NEO PERFORMMAT. It trades about -0.19 of its total potential returns per unit of risk. NEO PERFORMMAT is currently generating about -0.09 per unit of volatility. If you would invest 527.00 in NEO PERFORMMAT on October 15, 2024 and sell it today you would lose (9.00) from holding NEO PERFORMMAT or give up 1.71% 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. NEO PERFORMMAT
Performance |
| Timeline |
| Lendlease Group |
| NEO PERFORMMAT |
Lendlease and NEO PERFORMMAT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease and NEO PERFORMMAT
The main advantage of trading using opposite Lendlease and NEO PERFORMMAT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease position performs unexpectedly, NEO PERFORMMAT 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 NEO PERFORMMAT will offset losses from the drop in NEO PERFORMMAT's long position.| Lendlease vs. AOI Electronics Co | Lendlease vs. Samsung Electronics Co | Lendlease vs. Costco Wholesale Corp | Lendlease vs. FAST RETAIL ADR |
| NEO PERFORMMAT vs. Soken Chemical Engineering | NEO PERFORMMAT vs. Sunny Optical Technology | NEO PERFORMMAT vs. DXC Technology Co | NEO PERFORMMAT vs. Lendlease 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |