Correlation Between Television Broadcasts and Lendlease
Can any of the company-specific risk be diversified away by investing in both Television Broadcasts 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 Television Broadcasts and Lendlease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Television Broadcasts Limited and Lendlease Group, you can compare the effects of market volatilities on Television Broadcasts 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 Television Broadcasts with a short position of Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Television Broadcasts and Lendlease.
Diversification Opportunities for Television Broadcasts and Lendlease
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Television and Lendlease is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Television Broadcasts Limited and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group and Television Broadcasts 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 Television Broadcasts Limited 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 Television Broadcasts i.e., Television Broadcasts and Lendlease go up and down completely randomly.
Pair Corralation between Television Broadcasts and Lendlease
Assuming the 90 days trading horizon Television Broadcasts is expected to generate 6.57 times less return on investment than Lendlease. In addition to that, Television Broadcasts is 1.62 times more volatile than Lendlease Group. It trades about 0.01 of its total potential returns per unit of risk. Lendlease Group is currently generating about 0.09 per unit of volatility. If you would invest 374.00 in Lendlease Group on October 28, 2024 and sell it today you would earn a total of 7.00 from holding Lendlease Group or generate 1.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Television Broadcasts Limited vs. Lendlease Group
Performance |
| Timeline |
| Television Broadcasts |
| Lendlease Group |
Television Broadcasts and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Television Broadcasts and Lendlease
The main advantage of trading using opposite Television Broadcasts and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Television Broadcasts 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.| Television Broadcasts vs. BOS BETTER ONLINE | Television Broadcasts vs. Inspire Medical Systems | Television Broadcasts vs. Merit Medical Systems | Television Broadcasts vs. PEPTONIC MEDICAL |
| Lendlease vs. LANDSEA GREEN MANAGEMENT | Lendlease vs. APPLIED MATERIALS | Lendlease vs. The Yokohama Rubber | Lendlease vs. Perdoceo Education |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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