Correlation Between CapitaLand Investment and EAT WELL
Can any of the company-specific risk be diversified away by investing in both CapitaLand Investment and EAT WELL 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 CapitaLand Investment and EAT WELL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CapitaLand Investment Limited and EAT WELL INVESTMENT, you can compare the effects of market volatilities on CapitaLand Investment and EAT WELL 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 CapitaLand Investment with a short position of EAT WELL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and EAT WELL.
Diversification Opportunities for CapitaLand Investment and EAT WELL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CapitaLand and EAT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and EAT WELL INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAT WELL INVESTMENT and CapitaLand Investment 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 CapitaLand Investment Limited are associated (or correlated) with EAT WELL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAT WELL INVESTMENT has no effect on the direction of CapitaLand Investment i.e., CapitaLand Investment and EAT WELL go up and down completely randomly.
Pair Corralation between CapitaLand Investment and EAT WELL
If you would invest 195.00 in CapitaLand Investment Limited on August 29, 2024 and sell it today you would earn a total of 0.00 from holding CapitaLand Investment Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CapitaLand Investment Limited vs. EAT WELL INVESTMENT
Performance |
| Timeline |
| CapitaLand Investment |
| EAT WELL INVESTMENT |
CapitaLand Investment and EAT WELL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Investment and EAT WELL
The main advantage of trading using opposite CapitaLand Investment and EAT WELL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment position performs unexpectedly, EAT WELL 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 EAT WELL will offset losses from the drop in EAT WELL's long position.| CapitaLand Investment vs. Vonovia SE | CapitaLand Investment vs. Wharf Real Estate | CapitaLand Investment vs. Superior Plus Corp | CapitaLand Investment vs. NMI Holdings |
| EAT WELL vs. Perseus Mining Limited | EAT WELL vs. NISSIN FOODS HLDGS | EAT WELL vs. LIFEWAY FOODS | EAT WELL vs. Lifeway Foods |
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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