Correlation Between CRA International and Lennar
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By analyzing existing cross correlation between CRA International and Lennar 475 percent, you can compare the effects of market volatilities on CRA International and Lennar 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 CRA International with a short position of Lennar. Check out your portfolio center. Please also check ongoing floating volatility patterns of CRA International and Lennar.
Diversification Opportunities for CRA International and Lennar
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CRA and Lennar is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding CRA International and Lennar 475 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lennar 475 percent and CRA International 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 CRA International are associated (or correlated) with Lennar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lennar 475 percent has no effect on the direction of CRA International i.e., CRA International and Lennar go up and down completely randomly.
Pair Corralation between CRA International and Lennar
Given the investment horizon of 90 days CRA International is expected to generate 4.48 times more return on investment than Lennar. However, CRA International is 4.48 times more volatile than Lennar 475 percent. It trades about 0.05 of its potential returns per unit of risk. Lennar 475 percent is currently generating about 0.0 per unit of risk. If you would invest 12,007 in CRA International on September 24, 2024 and sell it today you would earn a total of 6,343 from holding CRA International or generate 52.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 99.4% |
Values | Daily Returns |
CRA International vs. Lennar 475 percent
Performance |
Timeline |
CRA International |
Lennar 475 percent |
CRA International and Lennar Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CRA International and Lennar
The main advantage of trading using opposite CRA International and Lennar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CRA International position performs unexpectedly, Lennar 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 Lennar will offset losses from the drop in Lennar's long position.CRA International vs. Franklin Covey | CRA International vs. ICF International | CRA International vs. Huron Consulting Group | CRA International vs. FTI Consulting |
Lennar vs. Emerson Electric | Lennar vs. Cincinnati Financial | Lennar vs. Direct Line Insurance | Lennar vs. Park Ohio Holdings |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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