Correlation Between Link Real and Lend Lease

Can any of the company-specific risk be diversified away by investing in both Link Real and Lend Lease 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 Link Real and Lend Lease into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Link Real Estate and Lend Lease Group, you can compare the effects of market volatilities on Link Real and Lend Lease 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 Link Real with a short position of Lend Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Link Real and Lend Lease.

Diversification Opportunities for Link Real and Lend Lease

0.0

Correlation Coefficient

Link Real  Lend Lease

Pay attention - limited upside

The 3 months correlation between Link and Lend is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Link Real Estate and Lend Lease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lend Lease Group and Link Real 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 Link Real Estate are associated (or correlated) with Lend Lease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lend Lease Group has no effect on the direction of Link Real i.e., Link Real and Lend Lease go up and down completely randomly.

Pair Corralation between Link Real and Lend Lease

If you would invest  493.00  in Link Real Estate on May 17, 2025 and sell it today you would earn a total of  77.00  from holding Link Real Estate or generate 15.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Link Real Estate  vs.  Lend Lease Group

Link Real Estate

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Link Real Estate are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Link Real reported solid returns over the last few months and may actually be approaching a breakup point.

Lend Lease Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Lend Lease Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Lend Lease is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Link Real and Lend Lease

The main advantage of trading using opposite Link Real and Lend Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Link Real position performs unexpectedly, Lend Lease 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 Lend Lease will offset losses from the drop in Lend Lease's long position.

The idea behind Link Real Estate and Lend Lease Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.