Correlation Between Gap, and Lendlease Global

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

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

Diversification Opportunities for Gap, and Lendlease Global

0.0

Correlation Coefficient

Gap,  Lendlease Global

Pay attention - limited upside

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

Pair Corralation between Gap, and Lendlease Global

If you would invest  45.00  in Lendlease Global Commercial on October 11, 2024 and sell it today you would earn a total of  0.00  from holding Lendlease Global Commercial or generate 0.0% return on investment over 90 days.

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

The Gap,  vs.  Lendlease Global Commercial

Gap,

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in The Gap, are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Gap, may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Lendlease Global Com

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Gap, and Lendlease Global

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

The idea behind The Gap, and Lendlease Global Commercial 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.