Correlation Between Lendlease Global and NewtekOne, 850

Can any of the company-specific risk be diversified away by investing in both Lendlease Global and NewtekOne, 850 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 NewtekOne, 850 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 NewtekOne, 850 percent, you can compare the effects of market volatilities on Lendlease Global and NewtekOne, 850 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 NewtekOne, 850. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease Global and NewtekOne, 850.

Diversification Opportunities for Lendlease Global and NewtekOne, 850

0.36

Correlation Coefficient

Lendlease Global  NewtekOne, 850

Weak diversification

The 3 months correlation between Lendlease and NewtekOne, is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Global Commercial and NewtekOne, 850 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewtekOne, 850 percent 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 NewtekOne, 850. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewtekOne, 850 percent has no effect on the direction of Lendlease Global i.e., Lendlease Global and NewtekOne, 850 go up and down completely randomly.

Pair Corralation between Lendlease Global and NewtekOne, 850

Assuming the 90 days horizon Lendlease Global Commercial is expected to generate 1.01 times more return on investment than NewtekOne, 850. However, Lendlease Global is 1.01 times more volatile than NewtekOne, 850 percent. It trades about 0.13 of its potential returns per unit of risk. NewtekOne, 850 percent is currently generating about 0.04 per unit of risk. If you would invest  44.00  in Lendlease Global Commercial on December 23, 2024 and sell it today you would earn a total of  1.00  from holding Lendlease Global Commercial or generate 2.27% return on investment over 90 days.

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

Lendlease Global Commercial  vs.  NewtekOne, 850 percent

Lendlease Global Com

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lendlease Global Commercial are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable fundamental indicators, Lendlease Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

NewtekOne, 850 percent

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in NewtekOne, 850 percent are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, NewtekOne, 850 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Lendlease Global and NewtekOne, 850

The main advantage of trading using opposite Lendlease Global and NewtekOne, 850 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease Global position performs unexpectedly, NewtekOne, 850 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 NewtekOne, 850 will offset losses from the drop in NewtekOne, 850's long position.

The idea behind Lendlease Global Commercial and NewtekOne, 850 percent 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.