Correlation Between Future Farm and Lend Lease

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Can any of the company-specific risk be diversified away by investing in both Future Farm and Lend Lease 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 Future Farm and Lend Lease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Future Farm Technologies and Lend Lease Group, you can compare the effects of market volatilities on Future Farm and Lend Lease 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 Future Farm with a short position of Lend Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Future Farm and Lend Lease.

Diversification Opportunities for Future Farm and Lend Lease

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Future Farm and Lend Lease

If you would invest  0.00  in Future Farm Technologies on August 31, 2025 and sell it today you would earn a total of  0.00  from holding Future Farm Technologies or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.41%
ValuesDaily Returns

Future Farm Technologies  vs.  Lend Lease Group

 Performance 
       Timeline  
Future Farm Technologies 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Future Farm Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Future Farm is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
Lend Lease Group 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Lend Lease Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Future Farm and Lend Lease Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Future Farm and Lend Lease

The main advantage of trading using opposite Future Farm and Lend Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Future Farm position performs unexpectedly, Lend Lease 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 Lend Lease will offset losses from the drop in Lend Lease's long position.
The idea behind Future Farm Technologies and Lend Lease Group 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.

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