Correlation Between Agree Realty and CapitaLand Integrated
Can any of the company-specific risk be diversified away by investing in both Agree Realty and CapitaLand Integrated 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 Agree Realty and CapitaLand Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agree Realty and CapitaLand Integrated Commercial, you can compare the effects of market volatilities on Agree Realty and CapitaLand Integrated 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 Agree Realty with a short position of CapitaLand Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agree Realty and CapitaLand Integrated.
Diversification Opportunities for Agree Realty and CapitaLand Integrated
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agree and CapitaLand is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Agree Realty and CapitaLand Integrated Commerci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Integrated and Agree Realty 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 Agree Realty are associated (or correlated) with CapitaLand Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CapitaLand Integrated has no effect on the direction of Agree Realty i.e., Agree Realty and CapitaLand Integrated go up and down completely randomly.
Pair Corralation between Agree Realty and CapitaLand Integrated
Considering the 90-day investment horizon Agree Realty is expected to under-perform the CapitaLand Integrated. But the stock apears to be less risky and, when comparing its historical volatility, Agree Realty is 4.11 times less risky than CapitaLand Integrated. The stock trades about -0.2 of its potential returns per unit of risk. The CapitaLand Integrated Commercial is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 136.00 in CapitaLand Integrated Commercial on September 14, 2024 and sell it today you would earn a total of 9.00 from holding CapitaLand Integrated Commercial or generate 6.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agree Realty vs. CapitaLand Integrated Commerci
Performance |
| Timeline |
| Agree Realty |
| CapitaLand Integrated |
Agree Realty and CapitaLand Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agree Realty and CapitaLand Integrated
The main advantage of trading using opposite Agree Realty and CapitaLand Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agree Realty position performs unexpectedly, CapitaLand Integrated 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 CapitaLand Integrated will offset losses from the drop in CapitaLand Integrated's long position.| Agree Realty vs. Federal Realty Investment | Agree Realty vs. Regency Centers | Agree Realty vs. Netstreit Corp | Agree Realty vs. Kimco Realty |
| CapitaLand Integrated vs. Regency Centers | CapitaLand Integrated vs. Getty Realty | CapitaLand Integrated vs. Site Centers Corp | CapitaLand Integrated vs. Brixmor Property |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |