Correlation Between NEWMONT PORATION and Lendlease
Can any of the company-specific risk be diversified away by investing in both NEWMONT PORATION 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 NEWMONT PORATION and Lendlease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NEWMONT PORATION CDI and Lendlease Group, you can compare the effects of market volatilities on NEWMONT PORATION 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 NEWMONT PORATION with a short position of Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEWMONT PORATION and Lendlease.
Diversification Opportunities for NEWMONT PORATION and Lendlease
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NEWMONT and Lendlease is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding NEWMONT PORATION CDI and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group and NEWMONT PORATION 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 NEWMONT PORATION CDI 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 NEWMONT PORATION i.e., NEWMONT PORATION and Lendlease go up and down completely randomly.
Pair Corralation between NEWMONT PORATION and Lendlease
Assuming the 90 days trading horizon NEWMONT PORATION CDI is expected to under-perform the Lendlease. In addition to that, NEWMONT PORATION is 2.22 times more volatile than Lendlease Group. It trades about -0.14 of its total potential returns per unit of risk. Lendlease Group is currently generating about -0.06 per unit of volatility. If you would invest 710.00 in Lendlease Group on August 29, 2024 and sell it today you would lose (26.00) from holding Lendlease Group or give up 3.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NEWMONT PORATION CDI vs. Lendlease Group
Performance |
| Timeline |
| NEWMONT PORATION CDI |
| Lendlease Group |
NEWMONT PORATION and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEWMONT PORATION and Lendlease
The main advantage of trading using opposite NEWMONT PORATION and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEWMONT PORATION 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.| NEWMONT PORATION vs. Stelar Metals | NEWMONT PORATION vs. Kip McGrath Education | NEWMONT PORATION vs. Epsilon Healthcare | NEWMONT PORATION vs. Nova Eye Medical |
| Lendlease vs. Australian United Investment | Lendlease vs. Clime Investment Management | Lendlease vs. Mirrabooka Investments | Lendlease vs. Sandon Capital Investments |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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