Correlation Between Lendlease Global and Alta Equipment
Can any of the company-specific risk be diversified away by investing in both Lendlease Global and Alta Equipment 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 Global and Alta Equipment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Global Commercial and Alta Equipment Group, you can compare the effects of market volatilities on Lendlease Global and Alta Equipment 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 Global with a short position of Alta Equipment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease Global and Alta Equipment.
Diversification Opportunities for Lendlease Global and Alta Equipment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lendlease and Alta is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Global Commercial and Alta Equipment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alta Equipment Group and Lendlease Global 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 Global Commercial are associated (or correlated) with Alta Equipment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alta Equipment Group has no effect on the direction of Lendlease Global i.e., Lendlease Global and Alta Equipment go up and down completely randomly.
Pair Corralation between Lendlease Global and Alta Equipment
If you would invest 660.00 in Alta Equipment Group on October 20, 2024 and sell it today you would earn a total of 69.00 from holding Alta Equipment Group or generate 10.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lendlease Global Commercial vs. Alta Equipment Group
Performance |
| Timeline |
| Lendlease Global Com |
| Alta Equipment Group |
Lendlease Global and Alta Equipment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease Global and Alta Equipment
The main advantage of trading using opposite Lendlease Global and Alta Equipment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease Global position performs unexpectedly, Alta Equipment 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 Alta Equipment will offset losses from the drop in Alta Equipment's long position.| Lendlease Global vs. Kaiser Aluminum | Lendlease Global vs. Robix Environmental Technologies | Lendlease Global vs. Viemed Healthcare | Lendlease Global vs. Nippon Steel Corp |
| Alta Equipment vs. PROG Holdings | Alta Equipment vs. GATX Corporation | Alta Equipment vs. McGrath RentCorp | Alta Equipment vs. Custom Truck One |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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