Correlation Between OURGAME INTHOLDL and Lendlease

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

By analyzing existing cross correlation between OURGAME INTHOLDL 00005 and Lendlease Group, you can compare the effects of market volatilities on OURGAME INTHOLDL 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 OURGAME INTHOLDL with a short position of Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of OURGAME INTHOLDL and Lendlease.

Diversification Opportunities for OURGAME INTHOLDL and Lendlease

0.0

Correlation Coefficient

OURGAME INTHOLDL  Lendlease

Pay attention - limited upside

The 3 months correlation between OURGAME and Lendlease is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OURGAME INTHOLDL 00005 and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group and OURGAME INTHOLDL 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 OURGAME INTHOLDL 00005 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 OURGAME INTHOLDL i.e., OURGAME INTHOLDL and Lendlease go up and down completely randomly.

Pair Corralation between OURGAME INTHOLDL and Lendlease

Assuming the 90 days horizon OURGAME INTHOLDL 00005 is expected to generate 4.82 times more return on investment than Lendlease. However, OURGAME INTHOLDL is 4.82 times more volatile than Lendlease Group. It trades about 0.03 of its potential returns per unit of risk. Lendlease Group is currently generating about -0.02 per unit of risk. If you would invest  3.10  in OURGAME INTHOLDL 00005 on October 4, 2024 and sell it today you would lose (1.50) from holding OURGAME INTHOLDL 00005 or give up 48.39% of portfolio value over 90 days.

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

OURGAME INTHOLDL 00005  vs.  Lendlease Group

OURGAME INTHOLDL 00005

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OURGAME INTHOLDL 00005 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, OURGAME INTHOLDL is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Lendlease Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lendlease Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with OURGAME INTHOLDL and Lendlease

The main advantage of trading using opposite OURGAME INTHOLDL and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OURGAME INTHOLDL 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.

The idea behind OURGAME INTHOLDL 00005 and Lendlease 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.