Correlation Between Lend Lease and Com GuardCom

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

Diversification Opportunities for Lend Lease and Com GuardCom

0.21

Correlation Coefficient

Lend Lease  Com GuardCom

Modest diversification

The 3 months correlation between Lend and Com is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Lend Lease Group and Com GuardCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Com GuardCom 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 Com GuardCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Com GuardCom has no effect on the direction of Lend Lease i.e., Lend Lease and Com GuardCom go up and down completely randomly.

Pair Corralation between Lend Lease and Com GuardCom

Assuming the 90 days horizon Lend Lease Group is expected to under-perform the Com GuardCom. But the pink sheet apears to be less risky and, when comparing its historical volatility, Lend Lease Group is 10.45 times less risky than Com GuardCom. The pink sheet trades about -0.05 of its potential returns per unit of risk. The Com GuardCom is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  0.08  in Com GuardCom on September 12, 2025 and sell it today you would lose (0.01) from holding Com GuardCom or give up 12.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	72.94%
Values	Daily Returns

Lend Lease Group  vs.  Com GuardCom

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.

Com GuardCom

Risk-Adjusted Performance

Weakest

Over the last 90 days Com GuardCom has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Com GuardCom is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Lend Lease and Com GuardCom

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

The idea behind Lend Lease Group and Com GuardCom 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.