Correlation Between Lendlease and Genertec Universal

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

By analyzing existing cross correlation between Lendlease Group and Genertec Universal Medical, you can compare the effects of market volatilities on Lendlease and Genertec Universal 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 Lendlease with a short position of Genertec Universal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease and Genertec Universal.

Diversification Opportunities for Lendlease and Genertec Universal

-0.72

Correlation Coefficient

Lendlease  Genertec Universal

Pay attention - limited upside

The 3 months correlation between Lendlease and Genertec is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Group and Genertec Universal Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genertec Universal and Lendlease 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 Lendlease Group are associated (or correlated) with Genertec Universal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genertec Universal has no effect on the direction of Lendlease i.e., Lendlease and Genertec Universal go up and down completely randomly.

Pair Corralation between Lendlease and Genertec Universal

Assuming the 90 days trading horizon Lendlease is expected to generate 11.73 times less return on investment than Genertec Universal. But when comparing it to its historical volatility, Lendlease Group is 1.46 times less risky than Genertec Universal. It trades about 0.02 of its potential returns per unit of risk. Genertec Universal Medical is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  54.00  in Genertec Universal Medical on May 5, 2025 and sell it today you would earn a total of  13.00  from holding Genertec Universal Medical or generate 24.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Lendlease Group  vs.  Genertec Universal Medical

Lendlease Group

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Lendlease Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Lendlease is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Genertec Universal

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Genertec Universal Medical are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Genertec Universal reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lendlease and Genertec Universal

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

The idea behind Lendlease Group and Genertec Universal Medical 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.