Correlation Between CapitaLand Investment and Chiba Bank
Can any of the company-specific risk be diversified away by investing in both CapitaLand Investment and Chiba Bank 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 Chiba Bank 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 Chiba Bank, you can compare the effects of market volatilities on CapitaLand Investment and Chiba Bank 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 Chiba Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and Chiba Bank.
Diversification Opportunities for CapitaLand Investment and Chiba Bank
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CapitaLand and Chiba is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and Chiba Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chiba Bank 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 Chiba Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chiba Bank has no effect on the direction of CapitaLand Investment i.e., CapitaLand Investment and Chiba Bank go up and down completely randomly.
Pair Corralation between CapitaLand Investment and Chiba Bank
Assuming the 90 days horizon CapitaLand Investment is expected to generate 100.08 times less return on investment than Chiba Bank. But when comparing it to its historical volatility, CapitaLand Investment Limited is 1.72 times less risky than Chiba Bank. It trades about 0.01 of its potential returns per unit of risk. Chiba Bank is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 660.00 in Chiba Bank on August 29, 2024 and sell it today you would earn a total of 90.00 from holding Chiba Bank or generate 13.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CapitaLand Investment Limited vs. Chiba Bank
Performance |
| Timeline |
| CapitaLand Investment |
| Chiba Bank |
CapitaLand Investment and Chiba Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Investment and Chiba Bank
The main advantage of trading using opposite CapitaLand Investment and Chiba Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment position performs unexpectedly, Chiba Bank 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 Chiba Bank will offset losses from the drop in Chiba Bank'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 |
| Chiba Bank vs. Apple Inc | Chiba Bank vs. Apple Inc | Chiba Bank vs. Superior Plus Corp | Chiba Bank vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |