Correlation Between Martin Marietta and Lend Lease
Can any of the company-specific risk be diversified away by investing in both Martin Marietta 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 Martin Marietta and Lend Lease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martin Marietta Materials and Lend Lease Group, you can compare the effects of market volatilities on Martin Marietta 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 Martin Marietta with a short position of Lend Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Marietta and Lend Lease.
Diversification Opportunities for Martin Marietta and Lend Lease
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Martin and Lend is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Martin Marietta Materials 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 Martin Marietta 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 Martin Marietta Materials 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 Martin Marietta i.e., Martin Marietta and Lend Lease go up and down completely randomly.
Pair Corralation between Martin Marietta and Lend Lease
Considering the 90-day investment horizon Martin Marietta Materials is expected to generate 0.73 times more return on investment than Lend Lease. However, Martin Marietta Materials is 1.38 times less risky than Lend Lease. It trades about 0.02 of its potential returns per unit of risk. Lend Lease Group is currently generating about -0.06 per unit of risk. If you would invest 61,638 in Martin Marietta Materials on August 30, 2025 and sell it today you would earn a total of 612.00 from holding Martin Marietta Materials or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Martin Marietta Materials vs. Lend Lease Group
Performance |
| Timeline |
| Martin Marietta Materials |
| Lend Lease Group |
Martin Marietta and Lend Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Marietta and Lend Lease
The main advantage of trading using opposite Martin Marietta and Lend Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Marietta 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.| Martin Marietta vs. CVR Medical Corp | Martin Marietta vs. Japan Tobacco ADR | Martin Marietta vs. Xtant Medical Holdings | Martin Marietta vs. British American Tobacco |
| Lend Lease vs. Khiron Life Sciences | Lend Lease vs. BlueScope Steel Ltd | Lend Lease vs. Robix Environmental Technologies | Lend Lease vs. Nordic Semiconductor ASA |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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