Correlation Between Lendlease Global and MagnaChip Semiconductor
Can any of the company-specific risk be diversified away by investing in both Lendlease Global and MagnaChip Semiconductor 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 Global and MagnaChip Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Global Commercial and MagnaChip Semiconductor, you can compare the effects of market volatilities on Lendlease Global and MagnaChip Semiconductor 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 Global with a short position of MagnaChip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease Global and MagnaChip Semiconductor.
Diversification Opportunities for Lendlease Global and MagnaChip Semiconductor
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lendlease and MagnaChip is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Global Commercial and MagnaChip Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MagnaChip Semiconductor and Lendlease Global 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 Global Commercial are associated (or correlated) with MagnaChip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MagnaChip Semiconductor has no effect on the direction of Lendlease Global i.e., Lendlease Global and MagnaChip Semiconductor go up and down completely randomly.
Pair Corralation between Lendlease Global and MagnaChip Semiconductor
If you would invest 391.00 in MagnaChip Semiconductor on October 24, 2024 and sell it today you would earn a total of 26.00 from holding MagnaChip Semiconductor or generate 6.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Lendlease Global Commercial vs. MagnaChip Semiconductor
Performance |
Timeline |
Lendlease Global Com |
MagnaChip Semiconductor |
Lendlease Global and MagnaChip Semiconductor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lendlease Global and MagnaChip Semiconductor
The main advantage of trading using opposite Lendlease Global and MagnaChip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease Global position performs unexpectedly, MagnaChip Semiconductor 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 MagnaChip Semiconductor will offset losses from the drop in MagnaChip Semiconductor's long position.Lendlease Global vs. Mesa Air Group | Lendlease Global vs. Lipocine | Lendlease Global vs. flyExclusive, | Lendlease Global vs. Sun Country Airlines |
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Check out your portfolio center.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 CEOs Directory module to screen CEOs from public companies around the world.
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