Correlation Between Lend Lease and DigiAsia Corp
Can any of the company-specific risk be diversified away by investing in both Lend Lease and DigiAsia Corp 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 DigiAsia Corp 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 DigiAsia Corp, you can compare the effects of market volatilities on Lend Lease and DigiAsia Corp 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 DigiAsia Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lend Lease and DigiAsia Corp.
Diversification Opportunities for Lend Lease and DigiAsia Corp
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lend and DigiAsia is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Lend Lease Group and DigiAsia Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DigiAsia Corp 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 DigiAsia Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DigiAsia Corp has no effect on the direction of Lend Lease i.e., Lend Lease and DigiAsia Corp go up and down completely randomly.
Pair Corralation between Lend Lease and DigiAsia Corp
Assuming the 90 days horizon Lend Lease Group is expected to generate 0.07 times more return on investment than DigiAsia Corp. However, Lend Lease Group is 14.43 times less risky than DigiAsia Corp. It trades about -0.13 of its potential returns per unit of risk. DigiAsia Corp is currently generating about -0.37 per unit of risk. If you would invest 385.00 in Lend Lease Group on July 11, 2025 and sell it today you would lose (25.00) from holding Lend Lease Group or give up 6.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 79.69% |
| Values | Daily Returns |
Lend Lease Group vs. DigiAsia Corp
Performance |
| Timeline |
| Lend Lease Group |
| DigiAsia Corp |
Risk-Adjusted Performance
Weakest
Weak | Strong |
Lend Lease and DigiAsia Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lend Lease and DigiAsia Corp
The main advantage of trading using opposite Lend Lease and DigiAsia Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lend Lease position performs unexpectedly, DigiAsia Corp 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 DigiAsia Corp will offset losses from the drop in DigiAsia Corp's long position.| Lend Lease vs. Lend Lease Group | Lend Lease vs. Stratus Properties | Lend Lease vs. St Joe Company | Lend Lease vs. Link Real Estate |
| DigiAsia Corp vs. Nordic Semiconductor ASA | DigiAsia Corp vs. Ubisoft Entertainment | DigiAsia Corp vs. Reservoir Media | DigiAsia Corp vs. National CineMedia |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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