Correlation Between Scentre and Lendlease
Can any of the company-specific risk be diversified away by investing in both Scentre and Lendlease 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 Scentre and Lendlease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scentre Group and Lendlease Group, you can compare the effects of market volatilities on Scentre and Lendlease 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 Scentre with a short position of Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scentre and Lendlease.
Diversification Opportunities for Scentre and Lendlease
Very weak diversification
The 3 months correlation between Scentre and Lendlease is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Scentre Group and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group and Scentre 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 Scentre Group are associated (or correlated) with Lendlease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendlease Group has no effect on the direction of Scentre i.e., Scentre and Lendlease go up and down completely randomly.
Pair Corralation between Scentre and Lendlease
Assuming the 90 days trading horizon Scentre Group is expected to generate 0.87 times more return on investment than Lendlease. However, Scentre Group is 1.15 times less risky than Lendlease. It trades about -0.01 of its potential returns per unit of risk. Lendlease Group is currently generating about -0.18 per unit of risk. If you would invest 411.00 in Scentre Group on September 8, 2025 and sell it today you would lose (2.00) from holding Scentre Group or give up 0.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scentre Group vs. Lendlease Group
Performance |
| Timeline |
| Scentre Group |
| Lendlease Group |
Scentre and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scentre and Lendlease
The main advantage of trading using opposite Scentre and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scentre position performs unexpectedly, Lendlease 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 Lendlease will offset losses from the drop in Lendlease's long position.| Scentre vs. Microequities Asset Management | Scentre vs. Embark Early Education | Scentre vs. Kip Mcgrath Education | Scentre vs. Australian United Investment |
| Lendlease vs. Sports Entertainment Group | Lendlease vs. Nido Education | Lendlease vs. Australian Unity Office | Lendlease vs. Centuria Industrial REIT |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |