Correlation Between Future Farm and Lend Lease
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 Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Future Farm Technologies vs. Lend Lease Group
Performance |
| Timeline |
| Future Farm Technologies |
| Lend Lease Group |
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.| Future Farm vs. Knight Transportation | Future Farm vs. Yuexiu Transport Infrastructure | Future Farm vs. Tianjin Capital Environmental | Future Farm vs. Gaztransport Technigaz SA |
| Lend Lease vs. Fuquan Capital Management | Lend Lease vs. CTPartners Executive Search | Lend Lease vs. DATA Communications Management | Lend Lease vs. Cabal Communications |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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