Correlation Between M8 Sustainable and Lendlease
Can any of the company-specific risk be diversified away by investing in both M8 Sustainable and Lendlease 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 M8 Sustainable and Lendlease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between M8 Sustainable and Lendlease Group, you can compare the effects of market volatilities on M8 Sustainable and Lendlease 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 M8 Sustainable with a short position of Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of M8 Sustainable and Lendlease.
Diversification Opportunities for M8 Sustainable and Lendlease
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between M8S and Lendlease is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding M8 Sustainable and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group and M8 Sustainable 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 M8 Sustainable are associated (or correlated) with Lendlease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendlease Group has no effect on the direction of M8 Sustainable i.e., M8 Sustainable and Lendlease go up and down completely randomly.
Pair Corralation between M8 Sustainable and Lendlease
If you would invest 670.00 in Lendlease Group on September 13, 2024 and sell it today you would earn a total of 9.00 from holding Lendlease Group or generate 1.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
M8 Sustainable vs. Lendlease Group
Performance |
| Timeline |
| M8 Sustainable |
| Lendlease Group |
M8 Sustainable and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with M8 Sustainable and Lendlease
The main advantage of trading using opposite M8 Sustainable and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if M8 Sustainable position performs unexpectedly, Lendlease 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 Lendlease will offset losses from the drop in Lendlease's long position.| M8 Sustainable vs. Lendlease Group | M8 Sustainable vs. Farm Pride Foods | M8 Sustainable vs. Argo Investments | M8 Sustainable vs. Saferoads Holdings |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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