Correlation Between LSL Property and Rural Funds

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Can any of the company-specific risk be diversified away by investing in both LSL Property and Rural Funds 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 LSL Property and Rural Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LSL Property Services and Rural Funds Group, you can compare the effects of market volatilities on LSL Property and Rural Funds 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 LSL Property with a short position of Rural Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of LSL Property and Rural Funds.

Diversification Opportunities for LSL Property and Rural Funds

-0.49
  Correlation Coefficient

Very good diversification

The 3 months correlation between LSL and Rural is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding LSL Property Services and Rural Funds Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rural Funds Group and LSL Property 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 LSL Property Services are associated (or correlated) with Rural Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rural Funds Group has no effect on the direction of LSL Property i.e., LSL Property and Rural Funds go up and down completely randomly.

Pair Corralation between LSL Property and Rural Funds

If you would invest  336.00  in LSL Property Services on September 30, 2025 and sell it today you would earn a total of  19.00  from holding LSL Property Services or generate 5.65% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy5.0%
ValuesDaily Returns

LSL Property Services  vs.  Rural Funds Group

 Performance 
       Timeline  
LSL Property Services 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days LSL Property Services has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
Rural Funds Group 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Rural Funds Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Rural Funds is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

LSL Property and Rural Funds Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with LSL Property and Rural Funds

The main advantage of trading using opposite LSL Property and Rural Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LSL Property position performs unexpectedly, Rural Funds 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 Rural Funds will offset losses from the drop in Rural Funds' long position.
The idea behind LSL Property Services and Rural Funds Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.

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