Correlation Between CapitaLand Investment and GAMESTOP
Can any of the company-specific risk be diversified away by investing in both CapitaLand Investment and GAMESTOP 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 GAMESTOP 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 GAMESTOP, you can compare the effects of market volatilities on CapitaLand Investment and GAMESTOP 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 GAMESTOP. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and GAMESTOP.
Diversification Opportunities for CapitaLand Investment and GAMESTOP
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CapitaLand and GAMESTOP is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and GAMESTOP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMESTOP 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 GAMESTOP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMESTOP has no effect on the direction of CapitaLand Investment i.e., CapitaLand Investment and GAMESTOP go up and down completely randomly.
Pair Corralation between CapitaLand Investment and GAMESTOP
Assuming the 90 days horizon CapitaLand Investment Limited is expected to under-perform the GAMESTOP. But the stock apears to be less risky and, when comparing its historical volatility, CapitaLand Investment Limited is 3.01 times less risky than GAMESTOP. The stock trades about -0.05 of its potential returns per unit of risk. The GAMESTOP is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 2,028 in GAMESTOP on September 1, 2024 and sell it today you would earn a total of 674.00 from holding GAMESTOP or generate 33.23% 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. GAMESTOP
Performance |
| Timeline |
| CapitaLand Investment |
| GAMESTOP |
CapitaLand Investment and GAMESTOP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Investment and GAMESTOP
The main advantage of trading using opposite CapitaLand Investment and GAMESTOP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment position performs unexpectedly, GAMESTOP 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 GAMESTOP will offset losses from the drop in GAMESTOP'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 |
| GAMESTOP vs. SIVERS SEMICONDUCTORS AB | GAMESTOP vs. Darden Restaurants | GAMESTOP vs. Reliance Steel Aluminum | GAMESTOP vs. Q2M Managementberatung AG |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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