Correlation Between Lend Lease and InTest

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

Diversification Opportunities for Lend Lease and InTest

0.73

Correlation Coefficient

Lend Lease  InTest

Poor diversification

The 3 months correlation between Lend and InTest is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Lend Lease Group and inTest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on inTest 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 InTest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of inTest has no effect on the direction of Lend Lease i.e., Lend Lease and InTest go up and down completely randomly.

Pair Corralation between Lend Lease and InTest

Assuming the 90 days horizon Lend Lease Group is expected to under-perform the InTest. But the pink sheet apears to be less risky and, when comparing its historical volatility, Lend Lease Group is 2.09 times less risky than InTest. The pink sheet trades about -0.1 of its potential returns per unit of risk. The inTest is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  779.00  in inTest on October 8, 2025 and sell it today you would lose (6.00) from holding inTest or give up 0.77% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Lend Lease Group  vs.  inTest

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.

inTest

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in inTest are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, InTest is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Lend Lease and InTest

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

The idea behind Lend Lease Group and inTest 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.