Correlation Between CapitaLand Investment and Cass Information
Can any of the company-specific risk be diversified away by investing in both CapitaLand Investment and Cass Information 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 Cass Information 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 Cass Information Systems, you can compare the effects of market volatilities on CapitaLand Investment and Cass Information 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 Cass Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and Cass Information.
Diversification Opportunities for CapitaLand Investment and Cass Information
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CapitaLand and Cass is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and Cass Information Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cass Information Systems 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 Cass Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cass Information Systems has no effect on the direction of CapitaLand Investment i.e., CapitaLand Investment and Cass Information go up and down completely randomly.
Pair Corralation between CapitaLand Investment and Cass Information
Assuming the 90 days horizon CapitaLand Investment Limited is expected to under-perform the Cass Information. But the stock apears to be less risky and, when comparing its historical volatility, CapitaLand Investment Limited is 1.57 times less risky than Cass Information. The stock trades about -0.05 of its potential returns per unit of risk. The Cass Information Systems is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 3,920 in Cass Information Systems on September 1, 2024 and sell it today you would earn a total of 300.00 from holding Cass Information Systems or generate 7.65% 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. Cass Information Systems
Performance |
| Timeline |
| CapitaLand Investment |
| Cass Information Systems |
CapitaLand Investment and Cass Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Investment and Cass Information
The main advantage of trading using opposite CapitaLand Investment and Cass Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment position performs unexpectedly, Cass Information 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 Cass Information will offset losses from the drop in Cass Information'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 |
| Cass Information vs. MTI WIRELESS EDGE | Cass Information vs. PKSHA TECHNOLOGY INC | Cass Information vs. MACOM Technology Solutions | Cass Information vs. NURAN WIRELESS 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |