Correlation Between SOFR and Lennar
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By analyzing existing cross correlation between SOFR and Lennar 475 percent, you can compare the effects of market volatilities on SOFR 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 SOFR with a short position of Lennar. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOFR and Lennar.
Diversification Opportunities for SOFR and Lennar
Very good diversification
The 3 months correlation between SOFR and Lennar is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding SOFR 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 SOFR 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 SOFR 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 SOFR i.e., SOFR and Lennar go up and down completely randomly.
Pair Corralation between SOFR and Lennar
Given the investment horizon of 90 days SOFR is expected to generate 0.24 times more return on investment than Lennar. However, SOFR is 4.09 times less risky than Lennar. It trades about 0.17 of its potential returns per unit of risk. Lennar 475 percent is currently generating about -0.12 per unit of risk. If you would invest 9,940 in SOFR on September 24, 2024 and sell it today you would earn a total of 70.00 from holding SOFR or generate 0.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 93.85% |
Values | Daily Returns |
SOFR vs. Lennar 475 percent
Performance |
Timeline |
SOFR |
Lennar 475 percent |
SOFR and Lennar Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SOFR and Lennar
The main advantage of trading using opposite SOFR and Lennar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOFR 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.SOFR vs. Valued Advisers Trust | SOFR vs. Columbia Diversified Fixed | SOFR vs. Principal Exchange Traded Funds | SOFR vs. MFS Active Exchange |
Lennar vs. Suburban Propane Partners | Lennar vs. Highway Holdings Limited | Lennar vs. Pure Cycle | Lennar vs. WEC Energy Group |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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