Correlation Between OOhMedia and Lendlease
Can any of the company-specific risk be diversified away by investing in both OOhMedia 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 OOhMedia and Lendlease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between oOhMedia and Lendlease Group, you can compare the effects of market volatilities on OOhMedia 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 OOhMedia with a short position of Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of OOhMedia and Lendlease.
Diversification Opportunities for OOhMedia and Lendlease
Poor diversification
The 3 months correlation between OOhMedia and Lendlease is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding oOhMedia and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group and OOhMedia 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 oOhMedia 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 OOhMedia i.e., OOhMedia and Lendlease go up and down completely randomly.
Pair Corralation between OOhMedia and Lendlease
Assuming the 90 days trading horizon oOhMedia is expected to generate 1.02 times more return on investment than Lendlease. However, OOhMedia is 1.02 times more volatile than Lendlease Group. It trades about 0.02 of its potential returns per unit of risk. Lendlease Group is currently generating about 0.02 per unit of risk. If you would invest 113.00 in oOhMedia on September 2, 2024 and sell it today you would earn a total of 12.00 from holding oOhMedia or generate 10.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
oOhMedia vs. Lendlease Group
Performance |
| Timeline |
| oOhMedia |
| Lendlease Group |
OOhMedia and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OOhMedia and Lendlease
The main advantage of trading using opposite OOhMedia and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OOhMedia 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.| OOhMedia vs. Energy Resources | OOhMedia vs. 88 Energy | OOhMedia vs. A1 Investments Resources | OOhMedia vs. Coronado Global Resources |
| Lendlease vs. Scentre Group | Lendlease vs. Vicinity Centres Re | Lendlease vs. Charter Hall Retail | Lendlease vs. Cromwell Property Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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