Correlation Between Lendlease and GRENKELEASING

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

By analyzing existing cross correlation between Lendlease Group and GRENKELEASING Dusseldorf, you can compare the effects of market volatilities on Lendlease and GRENKELEASING 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 GRENKELEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease and GRENKELEASING.

Diversification Opportunities for Lendlease and GRENKELEASING

-0.82

Correlation Coefficient

Lendlease  GRENKELEASING

Pay attention - limited upside

The 3 months correlation between Lendlease and GRENKELEASING is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Group and GRENKELEASING Dusseldorf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRENKELEASING Duss 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 GRENKELEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRENKELEASING Duss has no effect on the direction of Lendlease i.e., Lendlease and GRENKELEASING go up and down completely randomly.

Pair Corralation between Lendlease and GRENKELEASING

Assuming the 90 days trading horizon Lendlease is expected to generate 9.61 times less return on investment than GRENKELEASING. But when comparing it to its historical volatility, Lendlease Group is 1.62 times less risky than GRENKELEASING. It trades about 0.03 of its potential returns per unit of risk. GRENKELEASING Dusseldorf is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  1,340  in GRENKELEASING Dusseldorf on May 7, 2025 and sell it today you would earn a total of  298.00  from holding GRENKELEASING Dusseldorf or generate 22.24% return on investment over 90 days.

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

Lendlease Group  vs.  GRENKELEASING Dusseldorf

Lendlease Group

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Lendlease Group are ranked lower than 2 (%) 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 current stock price uproar, may contribute to short-horizon losses for the private investors.

GRENKELEASING Duss

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GRENKELEASING Dusseldorf are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile forward-looking indicators, GRENKELEASING unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lendlease and GRENKELEASING

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

The idea behind Lendlease Group and GRENKELEASING Dusseldorf 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.