Correlation Between CapitaLand Investment and ANSYS
Can any of the company-specific risk be diversified away by investing in both CapitaLand Investment and ANSYS 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 ANSYS 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 ANSYS Inc, you can compare the effects of market volatilities on CapitaLand Investment and ANSYS 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 ANSYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and ANSYS.
Diversification Opportunities for CapitaLand Investment and ANSYS
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CapitaLand and ANSYS is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and ANSYS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANSYS Inc 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 ANSYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANSYS Inc has no effect on the direction of CapitaLand Investment i.e., CapitaLand Investment and ANSYS go up and down completely randomly.
Pair Corralation between CapitaLand Investment and ANSYS
Assuming the 90 days horizon CapitaLand Investment Limited is expected to under-perform the ANSYS. But the stock apears to be less risky and, when comparing its historical volatility, CapitaLand Investment Limited is 1.41 times less risky than ANSYS. The stock trades about -0.05 of its potential returns per unit of risk. The ANSYS Inc is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 29,880 in ANSYS Inc on September 1, 2024 and sell it today you would earn a total of 3,170 from holding ANSYS Inc or generate 10.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
CapitaLand Investment Limited vs. ANSYS Inc
Performance |
| Timeline |
| CapitaLand Investment |
| ANSYS Inc |
CapitaLand Investment and ANSYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Investment and ANSYS
The main advantage of trading using opposite CapitaLand Investment and ANSYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment position performs unexpectedly, ANSYS 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 ANSYS will offset losses from the drop in ANSYS's long position.| CapitaLand Investment vs. CBRE Group Class | CapitaLand Investment vs. Superior Plus Corp | CapitaLand Investment vs. NMI Holdings | CapitaLand Investment vs. Origin Agritech |
| ANSYS vs. Apollo Investment Corp | ANSYS vs. CapitaLand Investment Limited | ANSYS vs. SAFETY MEDICAL PROD | ANSYS vs. IMAGIN MEDICAL INC |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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