Correlation Analysis Between Lennar and Beazer Homes

This module allows you to analyze existing cross correlation between Lennar Corporation and Beazer Homes USA. You can compare the effects of market volatilities on Lennar and Beazer Homes 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 Lennar with a short position of Beazer Homes. See also your portfolio center. Please also check ongoing floating volatility patterns of Lennar and Beazer Homes.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

Lennar  
22

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Lennar Corporation are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days. Allthough quite persistent forward indicators, Lennar is not utilizing all of its potentials. The prevalent stock price mess, may contribute to short term losses for the partners.
Beazer Homes USA  
1717

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Beazer Homes USA are ranked lower than 17 (%) of all global equities and portfolios over the last 30 days. Despite nearly weak fundamental indicators, Beazer Homes layed out solid returns over the last few months and may actually be approaching a breakup point.

Lennar and Beazer Homes Volatility Contrast

 Predicted Return Density 
      Returns 

Lennar Corp.  vs.  Beazer Homes USA Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Lennar is expected to generate 10.33 times less return on investment than Beazer Homes. But when comparing it to its historical volatility, Lennar Corporation is 1.41 times less risky than Beazer Homes. It trades about 0.03 of its potential returns per unit of risk. Beazer Homes USA is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  1,000.00  in Beazer Homes USA on August 19, 2019 and sell it today you would earn a total of  428.00  from holding Beazer Homes USA or generate 42.8% return on investment over 30 days.

Pair Corralation between Lennar and Beazer Homes

0.64
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy98.44%
ValuesDaily Returns

Diversification Opportunities for Lennar and Beazer Homes

Lennar Corp. diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Lennar Corp. and Beazer Homes USA Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Beazer Homes USA and Lennar 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 Lennar Corporation are associated (or correlated) with Beazer Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beazer Homes USA has no effect on the direction of Lennar i.e. Lennar and Beazer Homes go up and down completely randomly.
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