Correlation Between Solid Power and Lend Lease
Can any of the company-specific risk be diversified away by investing in both Solid Power 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 Solid Power and Lend Lease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solid Power and Lend Lease Group, you can compare the effects of market volatilities on Solid Power 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 Solid Power with a short position of Lend Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solid Power and Lend Lease.
Diversification Opportunities for Solid Power and Lend Lease
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Solid and Lend is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Solid Power 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 Solid Power 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 Solid Power 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 Solid Power i.e., Solid Power and Lend Lease go up and down completely randomly.
Pair Corralation between Solid Power and Lend Lease
Given the investment horizon of 90 days Solid Power is expected to generate 6.31 times more return on investment than Lend Lease. However, Solid Power is 6.31 times more volatile than Lend Lease Group. It trades about 0.07 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 419.00 in Solid Power on September 5, 2025 and sell it today you would earn a total of 70.00 from holding Solid Power or generate 16.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Solid Power vs. Lend Lease Group
Performance |
| Timeline |
| Solid Power |
| Lend Lease Group |
Solid Power and Lend Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solid Power and Lend Lease
The main advantage of trading using opposite Solid Power and Lend Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solid Power 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.| Solid Power vs. 24SevenOffice Group AB | Solid Power vs. Piedmont Office Realty | Solid Power vs. Orthometrix | Solid Power vs. Smith Douglas Homes |
| Lend Lease vs. Global Net Lease | Lend Lease vs. Education Management Corp | Lend Lease vs. Element Fleet Management | Lend Lease vs. Broadstone Net Lease |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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