Correlation Between Lend Lease and Aedifica

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

Diversification Opportunities for Lend Lease and Aedifica

0.0

Correlation Coefficient

Lend Lease  Aedifica

Pay attention - limited upside

The 3 months correlation between Lend and Aedifica is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lend Lease Group and Aedifica SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aedifica SA 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 Aedifica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aedifica SA has no effect on the direction of Lend Lease i.e., Lend Lease and Aedifica go up and down completely randomly.

Pair Corralation between Lend Lease and Aedifica

If you would invest  7,450  in Aedifica SA on September 26, 2025 and sell it today you would earn a total of  0.00  from holding Aedifica SA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Lend Lease Group  vs.  Aedifica SA

Lend Lease Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Lend Lease Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak 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.

Aedifica SA

Risk-Adjusted Performance

Weakest

Over the last 90 days Aedifica SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Aedifica is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Lend Lease and Aedifica

The main advantage of trading using opposite Lend Lease and Aedifica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lend Lease position performs unexpectedly, Aedifica 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 Aedifica will offset losses from the drop in Aedifica's long position.

The idea behind Lend Lease Group and Aedifica SA 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.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.