Correlation Between CapitaLand Investment and Hellenic Petroleum
Can any of the company-specific risk be diversified away by investing in both CapitaLand Investment and Hellenic Petroleum 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 Hellenic Petroleum 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 Hellenic Petroleum SA, you can compare the effects of market volatilities on CapitaLand Investment and Hellenic Petroleum 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 Hellenic Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and Hellenic Petroleum.
Diversification Opportunities for CapitaLand Investment and Hellenic Petroleum
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CapitaLand and Hellenic is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and Hellenic Petroleum SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hellenic Petroleum 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 Hellenic Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hellenic Petroleum has no effect on the direction of CapitaLand Investment i.e., CapitaLand Investment and Hellenic Petroleum go up and down completely randomly.
Pair Corralation between CapitaLand Investment and Hellenic Petroleum
Assuming the 90 days horizon CapitaLand Investment Limited is expected to generate 0.91 times more return on investment than Hellenic Petroleum. However, CapitaLand Investment Limited is 1.1 times less risky than Hellenic Petroleum. It trades about -0.08 of its potential returns per unit of risk. Hellenic Petroleum SA is currently generating about -0.08 per unit of risk. If you would invest 194.00 in CapitaLand Investment Limited on August 30, 2024 and sell it today you would lose (5.00) from holding CapitaLand Investment Limited or give up 2.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CapitaLand Investment Limited vs. Hellenic Petroleum SA
Performance |
| Timeline |
| CapitaLand Investment |
| Hellenic Petroleum |
CapitaLand Investment and Hellenic Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Investment and Hellenic Petroleum
The main advantage of trading using opposite CapitaLand Investment and Hellenic Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment position performs unexpectedly, Hellenic Petroleum 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 Hellenic Petroleum will offset losses from the drop in Hellenic Petroleum's long position.| CapitaLand Investment vs. Vonovia SE | CapitaLand Investment vs. Superior Plus Corp | CapitaLand Investment vs. NMI Holdings | CapitaLand Investment vs. SIVERS SEMICONDUCTORS AB |
| Hellenic Petroleum vs. MICRONIC MYDATA | Hellenic Petroleum vs. Darden Restaurants | Hellenic Petroleum vs. DATAGROUP SE | Hellenic Petroleum vs. DICKER DATA LTD |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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