Correlation Between ATRESMEDIA and Lendlease
Can any of the company-specific risk be diversified away by investing in both ATRESMEDIA 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 ATRESMEDIA and Lendlease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRESMEDIA and Lendlease Group, you can compare the effects of market volatilities on ATRESMEDIA 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 ATRESMEDIA with a short position of Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRESMEDIA and Lendlease.
Diversification Opportunities for ATRESMEDIA and Lendlease
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ATRESMEDIA and Lendlease is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding ATRESMEDIA and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group and ATRESMEDIA 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 ATRESMEDIA 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 ATRESMEDIA i.e., ATRESMEDIA and Lendlease go up and down completely randomly.
Pair Corralation between ATRESMEDIA and Lendlease
Assuming the 90 days trading horizon ATRESMEDIA is expected to generate 0.67 times more return on investment than Lendlease. However, ATRESMEDIA is 1.5 times less risky than Lendlease. It trades about 0.08 of its potential returns per unit of risk. Lendlease Group is currently generating about 0.01 per unit of risk. If you would invest 269.00 in ATRESMEDIA on September 2, 2024 and sell it today you would earn a total of 180.00 from holding ATRESMEDIA or generate 66.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRESMEDIA vs. Lendlease Group
Performance |
| Timeline |
| ATRESMEDIA |
| Lendlease Group |
ATRESMEDIA and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRESMEDIA and Lendlease
The main advantage of trading using opposite ATRESMEDIA and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRESMEDIA 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.| ATRESMEDIA vs. SIVERS SEMICONDUCTORS AB | ATRESMEDIA vs. Darden Restaurants | ATRESMEDIA vs. Reliance Steel Aluminum | ATRESMEDIA vs. Q2M Managementberatung AG |
| Lendlease vs. FARO Technologies | Lendlease vs. Cass Information Systems | Lendlease vs. Hyrican Informationssysteme Aktiengesellschaft | Lendlease vs. Automatic Data Processing |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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