Correlation Between Turning Point and Lendlease Global
Can any of the company-specific risk be diversified away by investing in both Turning Point and Lendlease Global 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 Turning Point and Lendlease Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turning Point Brands and Lendlease Global Commercial, you can compare the effects of market volatilities on Turning Point and Lendlease Global 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 Turning Point with a short position of Lendlease Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turning Point and Lendlease Global.
Diversification Opportunities for Turning Point and Lendlease Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Turning and Lendlease is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Turning Point Brands and Lendlease Global Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Global Com and Turning Point 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 Turning Point Brands are associated (or correlated) with Lendlease Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendlease Global Com has no effect on the direction of Turning Point i.e., Turning Point and Lendlease Global go up and down completely randomly.
Pair Corralation between Turning Point and Lendlease Global
Considering the 90-day investment horizon Turning Point Brands is expected to generate 6.45 times more return on investment than Lendlease Global. However, Turning Point is 6.45 times more volatile than Lendlease Global Commercial. It trades about 0.14 of its potential returns per unit of risk. Lendlease Global Commercial is currently generating about 0.09 per unit of risk. If you would invest 2,303 in Turning Point Brands on August 31, 2024 and sell it today you would earn a total of 3,887 from holding Turning Point Brands or generate 168.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.06% |
| Values | Daily Returns |
Turning Point Brands vs. Lendlease Global Commercial
Performance |
| Timeline |
| Turning Point Brands |
| Lendlease Global Com |
Turning Point and Lendlease Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turning Point and Lendlease Global
The main advantage of trading using opposite Turning Point and Lendlease Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turning Point position performs unexpectedly, Lendlease Global 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 Global will offset losses from the drop in Lendlease Global's long position.| Turning Point vs. Universal | Turning Point vs. Imperial Brands PLC | Turning Point vs. British American Tobacco | Turning Point vs. Philip Morris International |
| Lendlease Global vs. Boston Omaha Corp | Lendlease Global vs. National CineMedia | Lendlease Global vs. Entravision Communications | Lendlease Global vs. Live Ventures |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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