Correlation Between SAFEROADS HLDGS and Lendlease
Can any of the company-specific risk be diversified away by investing in both SAFEROADS HLDGS 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 SAFEROADS HLDGS and Lendlease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAFEROADS HLDGS and Lendlease Group, you can compare the effects of market volatilities on SAFEROADS HLDGS 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 SAFEROADS HLDGS with a short position of Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAFEROADS HLDGS and Lendlease.
Diversification Opportunities for SAFEROADS HLDGS and Lendlease
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SAFEROADS and Lendlease is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SAFEROADS HLDGS and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group and SAFEROADS HLDGS 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 SAFEROADS HLDGS 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 SAFEROADS HLDGS i.e., SAFEROADS HLDGS and Lendlease go up and down completely randomly.
Pair Corralation between SAFEROADS HLDGS and Lendlease
If you would invest 378.00 in Lendlease Group on November 5, 2024 and sell it today you would earn a total of 8.00 from holding Lendlease Group or generate 2.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
SAFEROADS HLDGS vs. Lendlease Group
Performance |
| Timeline |
| SAFEROADS HLDGS |
| Lendlease Group |
SAFEROADS HLDGS and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAFEROADS HLDGS and Lendlease
The main advantage of trading using opposite SAFEROADS HLDGS and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAFEROADS HLDGS 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.| SAFEROADS HLDGS vs. Haier Smart Home | SAFEROADS HLDGS vs. Acadia Healthcare | SAFEROADS HLDGS vs. Brockhaus Capital Management | SAFEROADS HLDGS vs. Addus HomeCare |
| Lendlease vs. QBE Insurance Group | Lendlease vs. Taiwan Semiconductor Manufacturing | Lendlease vs. MagnaChip Semiconductor Corp | Lendlease vs. UNIQA INSURANCE GR |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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