Correlation Between Lend Lease and Rogers Communications

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Can any of the company-specific risk be diversified away by investing in both Lend Lease and Rogers Communications 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 Rogers Communications 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 Rogers Communications, you can compare the effects of market volatilities on Lend Lease and Rogers Communications 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 Rogers Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lend Lease and Rogers Communications.

Diversification Opportunities for Lend Lease and Rogers Communications

-0.54
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Lend and Rogers is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Lend Lease Group and Rogers Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rogers Communications 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 Rogers Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rogers Communications has no effect on the direction of Lend Lease i.e., Lend Lease and Rogers Communications go up and down completely randomly.

Pair Corralation between Lend Lease and Rogers Communications

Assuming the 90 days horizon Lend Lease Group is expected to under-perform the Rogers Communications. But the pink sheet apears to be less risky and, when comparing its historical volatility, Lend Lease Group is 1.63 times less risky than Rogers Communications. The pink sheet trades about -0.08 of its potential returns per unit of risk. The Rogers Communications is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  2,887  in Rogers Communications on August 28, 2025 and sell it today you would earn a total of  871.00  from holding Rogers Communications or generate 30.17% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy98.43%
ValuesDaily Returns

Lend Lease Group  vs.  Rogers Communications

 Performance 
       Timeline  
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 unfluctuating 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.
Rogers Communications 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Rogers Communications are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Rogers Communications is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Lend Lease and Rogers Communications Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Lend Lease and Rogers Communications

The main advantage of trading using opposite Lend Lease and Rogers Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lend Lease position performs unexpectedly, Rogers Communications 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 Rogers Communications will offset losses from the drop in Rogers Communications' long position.
The idea behind Lend Lease Group and Rogers Communications 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.
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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