Correlation Between Lend Lease and Belite Bio
Can any of the company-specific risk be diversified away by investing in both Lend Lease and Belite Bio 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 Lend Lease and Belite Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lend Lease Group and Belite Bio ADR, you can compare the effects of market volatilities on Lend Lease and Belite Bio 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 Lend Lease with a short position of Belite Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lend Lease and Belite Bio.
Diversification Opportunities for Lend Lease and Belite Bio
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lend and Belite is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Lend Lease Group and Belite Bio ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Belite Bio ADR and Lend 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 Lend Lease Group are associated (or correlated) with Belite Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Belite Bio ADR has no effect on the direction of Lend Lease i.e., Lend Lease and Belite Bio go up and down completely randomly.
Pair Corralation between Lend Lease and Belite Bio
Assuming the 90 days horizon Lend Lease Group is expected to under-perform the Belite Bio. But the pink sheet apears to be less risky and, when comparing its historical volatility, Lend Lease Group is 2.47 times less risky than Belite Bio. The pink sheet trades about -0.06 of its potential returns per unit of risk. The Belite Bio ADR is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 6,536 in Belite Bio ADR on September 1, 2025 and sell it today you would earn a total of 7,208 from holding Belite Bio ADR or generate 110.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lend Lease Group vs. Belite Bio ADR
Performance |
| Timeline |
| Lend Lease Group |
| Belite Bio ADR |
Lend Lease and Belite Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lend Lease and Belite Bio
The main advantage of trading using opposite Lend Lease and Belite Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lend Lease position performs unexpectedly, Belite Bio 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 Belite Bio will offset losses from the drop in Belite Bio's long position.| Lend Lease vs. Fuquan Capital Management | Lend Lease vs. CTPartners Executive Search | Lend Lease vs. DATA Communications Management | Lend Lease vs. Cabal Communications |
| Belite Bio vs. Telephone and Data | Belite Bio vs. InPlay Oil Corp | Belite Bio vs. Datadog | Belite Bio vs. Teradata Corp |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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