Correlation Between Peel Mining and Lendlease
Can any of the company-specific risk be diversified away by investing in both Peel Mining 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 Peel Mining and Lendlease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peel Mining and Lendlease Group, you can compare the effects of market volatilities on Peel Mining 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 Peel Mining with a short position of Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peel Mining and Lendlease.
Diversification Opportunities for Peel Mining and Lendlease
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Peel and Lendlease is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Peel Mining and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group and Peel Mining 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 Peel Mining 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 Peel Mining i.e., Peel Mining and Lendlease go up and down completely randomly.
Pair Corralation between Peel Mining and Lendlease
Assuming the 90 days trading horizon Peel Mining is expected to under-perform the Lendlease. In addition to that, Peel Mining is 2.72 times more volatile than Lendlease Group. It trades about -0.11 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 676.00 in Lendlease Group on August 27, 2024 and sell it today you would lose (11.00) from holding Lendlease Group or give up 1.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peel Mining vs. Lendlease Group
Performance |
| Timeline |
| Peel Mining |
| Lendlease Group |
Peel Mining and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peel Mining and Lendlease
The main advantage of trading using opposite Peel Mining and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peel Mining 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.| Peel Mining vs. Mayfield Childcare | Peel Mining vs. Kip McGrath Education | Peel Mining vs. Hudson Investment Group | Peel Mining vs. Dexus Convenience Retail |
| Lendlease vs. Charter Hall Retail | Lendlease vs. Infomedia | Lendlease vs. Skycity Entertainment Group | Lendlease vs. Nine Entertainment Co |
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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