Correlation Between Lendlease and Peel Mining
Can any of the company-specific risk be diversified away by investing in both Lendlease and Peel Mining 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 Peel Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Group and Peel Mining Limited, you can compare the effects of market volatilities on Lendlease and Peel Mining 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 Peel Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease and Peel Mining.
Diversification Opportunities for Lendlease and Peel Mining
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lendlease and Peel is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Group and Peel Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peel Mining Limited 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 Peel Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peel Mining Limited has no effect on the direction of Lendlease i.e., Lendlease and Peel Mining go up and down completely randomly.
Pair Corralation between Lendlease and Peel Mining
Assuming the 90 days trading horizon Lendlease Group is expected to generate 0.38 times more return on investment than Peel Mining. However, Lendlease Group is 2.65 times less risky than Peel Mining. It trades about 0.16 of its potential returns per unit of risk. Peel Mining Limited is currently generating about -0.1 per unit of risk. If you would invest 365.00 in Lendlease Group on October 20, 2024 and sell it today you would earn a total of 11.00 from holding Lendlease Group or generate 3.01% 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. Peel Mining Limited
Performance |
| Timeline |
| Lendlease Group |
| Peel Mining Limited |
Lendlease and Peel Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease and Peel Mining
The main advantage of trading using opposite Lendlease and Peel Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease position performs unexpectedly, Peel Mining 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 Peel Mining will offset losses from the drop in Peel Mining's long position.| Lendlease vs. Westinghouse Air Brake | Lendlease vs. Wizz Air Holdings | Lendlease vs. GRENKELEASING Dusseldorf | Lendlease vs. WIZZ AIR HLDGUNSPADR4 |
| Peel Mining vs. CHRYSALIS INVESTMENTS LTD | Peel Mining vs. Scottish Mortgage Investment | Peel Mining vs. ECHO INVESTMENT ZY | Peel Mining vs. Charter 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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