Correlation Between Wang Lee and Lendlease Global

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

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

Diversification Opportunities for Wang Lee and Lendlease Global

0.28

Correlation Coefficient

Wang Lee  Lendlease Global

Modest diversification

The 3 months correlation between Wang and Lendlease is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Wang Lee Group, 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 Wang Lee 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 Wang Lee Group, 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 Wang Lee i.e., Wang Lee and Lendlease Global go up and down completely randomly.

Pair Corralation between Wang Lee and Lendlease Global

Given the investment horizon of 90 days Wang Lee Group, is expected to generate 45.42 times more return on investment than Lendlease Global. However, Wang Lee is 45.42 times more volatile than Lendlease Global Commercial. It trades about 0.19 of its potential returns per unit of risk. Lendlease Global Commercial is currently generating about 0.13 per unit of risk. If you would invest  195.00  in Wang Lee Group, on December 21, 2024 and sell it today you would earn a total of  342.00  from holding Wang Lee Group, or generate 175.38% return on investment over 90 days.

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

Wang Lee Group,  vs.  Lendlease Global Commercial

Wang Lee Group,

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Wang Lee Group, are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady technical and fundamental indicators, Wang Lee unveiled solid returns over the last few months and may actually be approaching a breakup point.

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

Pair Trading with Wang Lee and Lendlease Global

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

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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.