Correlation Between Willis Lease and Lendlease Global

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

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

Diversification Opportunities for Willis Lease and Lendlease Global

0.0

Correlation Coefficient

Willis Lease  Lendlease Global

Pay attention - limited upside

The 3 months correlation between Willis and Lendlease is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Willis Lease Finance 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 Willis Lease 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 Willis Lease Finance 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 Willis Lease i.e., Willis Lease and Lendlease Global go up and down completely randomly.

Pair Corralation between Willis Lease and Lendlease Global

If you would invest  20,821  in Willis Lease Finance on October 11, 2024 and sell it today you would earn a total of  394.00  from holding Willis Lease Finance or generate 1.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	97.56%
Values	Daily Returns

Willis Lease Finance  vs.  Lendlease Global Commercial

Willis Lease Finance

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Willis Lease Finance are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Willis Lease exhibited solid returns over the last few months and may actually be approaching a breakup point.

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 recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Willis Lease and Lendlease Global

The main advantage of trading using opposite Willis Lease and Lendlease Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willis Lease 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 Willis Lease Finance 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.

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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.