Correlation Between Lendlease Global and Custom Truck
Can any of the company-specific risk be diversified away by investing in both Lendlease Global and Custom Truck 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 Custom Truck 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 Custom Truck One, you can compare the effects of market volatilities on Lendlease Global and Custom Truck 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 Custom Truck. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease Global and Custom Truck.
Diversification Opportunities for Lendlease Global and Custom Truck
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lendlease and Custom is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Global Commercial and Custom Truck One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Custom Truck One 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 Custom Truck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Custom Truck One has no effect on the direction of Lendlease Global i.e., Lendlease Global and Custom Truck go up and down completely randomly.
Pair Corralation between Lendlease Global and Custom Truck
If you would invest 45.00 in Lendlease Global Commercial on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Lendlease Global Commercial or generate 0.0% 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. Custom Truck One
Performance |
| Timeline |
| Lendlease Global Com |
| Custom Truck One |
Lendlease Global and Custom Truck Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease Global and Custom Truck
The main advantage of trading using opposite Lendlease Global and Custom Truck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease Global position performs unexpectedly, Custom Truck 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 Custom Truck will offset losses from the drop in Custom Truck'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 |
| Custom Truck vs. PROG Holdings | Custom Truck vs. McGrath RentCorp | Custom Truck vs. HE Equipment Services | Custom Truck vs. GATX Corporation |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |