Correlation Between UNIDOC HEALTH and Lendlease

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

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

Diversification Opportunities for UNIDOC HEALTH and Lendlease

0.16

Correlation Coefficient

UNIDOC HEALTH  Lendlease

Average diversification

The 3 months correlation between UNIDOC and Lendlease is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding UNIDOC HEALTH P and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group and UNIDOC HEALTH 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 UNIDOC HEALTH P 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 UNIDOC HEALTH i.e., UNIDOC HEALTH and Lendlease go up and down completely randomly.

Pair Corralation between UNIDOC HEALTH and Lendlease

Assuming the 90 days horizon UNIDOC HEALTH P is expected to generate 3.09 times more return on investment than Lendlease. However, UNIDOC HEALTH is 3.09 times more volatile than Lendlease Group. It trades about 0.0 of its potential returns per unit of risk. Lendlease Group is currently generating about -0.11 per unit of risk. If you would invest  37.00  in UNIDOC HEALTH P on October 11, 2024 and sell it today you would lose (2.00) from holding UNIDOC HEALTH P or give up 5.41% of portfolio value over 90 days.

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

UNIDOC HEALTH P  vs.  Lendlease Group

UNIDOC HEALTH P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days UNIDOC HEALTH P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, UNIDOC HEALTH is not utilizing all of its potentials. The latest 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 latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with UNIDOC HEALTH and Lendlease

The main advantage of trading using opposite UNIDOC HEALTH and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIDOC HEALTH 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 UNIDOC HEALTH P 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.