Correlation Between Lendlease and Recce

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

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

Diversification Opportunities for Lendlease and Recce

0.0

Correlation Coefficient

Lendlease  Recce

Pay attention - limited upside

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

Pair Corralation between Lendlease and Recce

If you would invest (100.00) in Recce on October 4, 2024 and sell it today you would earn a total of  100.00  from holding Recce or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Lendlease Group  vs.  Recce

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 uncertain performance in the last few months, the Stock's fundamental 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.

Recce

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Recce has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Recce is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Lendlease and Recce

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

The idea behind Lendlease Group and Recce 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..