Correlation Between Lendlease Global and First Citizens
Can any of the company-specific risk be diversified away by investing in both Lendlease Global and First Citizens 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 First Citizens 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 The First Citizens, you can compare the effects of market volatilities on Lendlease Global and First Citizens 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 First Citizens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease Global and First Citizens.
Diversification Opportunities for Lendlease Global and First Citizens
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lendlease and First is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Global Commercial and The First Citizens in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Citizens 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 First Citizens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Citizens has no effect on the direction of Lendlease Global i.e., Lendlease Global and First Citizens go up and down completely randomly.
Pair Corralation between Lendlease Global and First Citizens
Assuming the 90 days horizon Lendlease Global Commercial is expected to generate 0.19 times more return on investment than First Citizens. However, Lendlease Global Commercial is 5.37 times less risky than First Citizens. It trades about 0.09 of its potential returns per unit of risk. The First Citizens is currently generating about -0.02 per unit of risk. If you would invest 41.00 in Lendlease Global Commercial on August 31, 2024 and sell it today you would earn a total of 4.00 from holding Lendlease Global Commercial or generate 9.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 28.37% |
| Values | Daily Returns |
Lendlease Global Commercial vs. The First Citizens
Performance |
| Timeline |
| Lendlease Global Com |
| First Citizens |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lendlease Global and First Citizens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease Global and First Citizens
The main advantage of trading using opposite Lendlease Global and First Citizens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease Global position performs unexpectedly, First Citizens 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 First Citizens will offset losses from the drop in First Citizens' long position.| Lendlease Global vs. Boston Omaha Corp | Lendlease Global vs. National CineMedia | Lendlease Global vs. Entravision Communications | Lendlease Global vs. Live Ventures |
| First Citizens vs. NRG Energy | First Citizens vs. Semtech | First Citizens vs. Allient | First Citizens vs. Flex |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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