Correlation Between Lendlease and PICKN PAY
Can any of the company-specific risk be diversified away by investing in both Lendlease and PICKN PAY 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 PICKN PAY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Group and PICKN PAY STORES, you can compare the effects of market volatilities on Lendlease and PICKN PAY 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 PICKN PAY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease and PICKN PAY.
Diversification Opportunities for Lendlease and PICKN PAY
Very good diversification
The 3 months correlation between Lendlease and PICKN is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Group and PICKN PAY STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PICKN PAY STORES 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 PICKN PAY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PICKN PAY STORES has no effect on the direction of Lendlease i.e., Lendlease and PICKN PAY go up and down completely randomly.
Pair Corralation between Lendlease and PICKN PAY
Assuming the 90 days trading horizon Lendlease is expected to generate 1.23 times less return on investment than PICKN PAY. But when comparing it to its historical volatility, Lendlease Group is 1.62 times less risky than PICKN PAY. It trades about 0.21 of its potential returns per unit of risk. PICKN PAY STORES is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 151.00 in PICKN PAY STORES on October 21, 2024 and sell it today you would earn a total of 7.00 from holding PICKN PAY STORES or generate 4.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lendlease Group vs. PICKN PAY STORES
Performance |
| Timeline |
| Lendlease Group |
| PICKN PAY STORES |
Lendlease and PICKN PAY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease and PICKN PAY
The main advantage of trading using opposite Lendlease and PICKN PAY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease position performs unexpectedly, PICKN PAY 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 PICKN PAY will offset losses from the drop in PICKN PAY's long position.| Lendlease vs. Westinghouse Air Brake | Lendlease vs. Wizz Air Holdings | Lendlease vs. GRENKELEASING Dusseldorf | Lendlease vs. WIZZ AIR HLDGUNSPADR4 |
| PICKN PAY vs. GWILLI FOOD | PICKN PAY vs. Lendlease Group | PICKN PAY vs. INDOFOOD AGRI RES | PICKN PAY vs. Air Lease |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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