Correlation Between CapitaLand Investment and Seaboard
Can any of the company-specific risk be diversified away by investing in both CapitaLand Investment and Seaboard 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 Seaboard 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 Seaboard, you can compare the effects of market volatilities on CapitaLand Investment and Seaboard 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 Seaboard. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and Seaboard.
Diversification Opportunities for CapitaLand Investment and Seaboard
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CapitaLand and Seaboard is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and Seaboard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seaboard 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 Seaboard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seaboard has no effect on the direction of CapitaLand Investment i.e., CapitaLand Investment and Seaboard go up and down completely randomly.
Pair Corralation between CapitaLand Investment and Seaboard
Assuming the 90 days horizon CapitaLand Investment Limited is expected to generate 0.87 times more return on investment than Seaboard. However, CapitaLand Investment Limited is 1.16 times less risky than Seaboard. It trades about -0.21 of its potential returns per unit of risk. Seaboard is currently generating about -0.2 per unit of risk. If you would invest 214.00 in CapitaLand Investment Limited on September 3, 2024 and sell it today you would lose (24.00) from holding CapitaLand Investment Limited or give up 11.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CapitaLand Investment Limited vs. Seaboard
Performance |
| Timeline |
| CapitaLand Investment |
| Seaboard |
CapitaLand Investment and Seaboard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Investment and Seaboard
The main advantage of trading using opposite CapitaLand Investment and Seaboard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment position performs unexpectedly, Seaboard 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 Seaboard will offset losses from the drop in Seaboard's long position.| CapitaLand Investment vs. COSTAR GROUP INC | CapitaLand Investment vs. CBRE Group Class | CapitaLand Investment vs. VONOVIA SE ADR | CapitaLand Investment vs. Vonovia SE |
| Seaboard vs. T MOBILE INCDL 00001 | Seaboard vs. WillScot Mobile Mini | Seaboard vs. Motorcar Parts of | Seaboard vs. CapitaLand Investment Limited |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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