Correlation Between Adler Group and CapitaLand Investment
Can any of the company-specific risk be diversified away by investing in both Adler Group and CapitaLand Investment 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 Adler Group and CapitaLand Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adler Group SA and CapitaLand Investment Limited, you can compare the effects of market volatilities on Adler Group and CapitaLand Investment 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 Adler Group with a short position of CapitaLand Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adler Group and CapitaLand Investment.
Diversification Opportunities for Adler Group and CapitaLand Investment
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Adler and CapitaLand is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Adler Group SA and CapitaLand Investment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Investment and Adler Group 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 Adler Group SA are associated (or correlated) with CapitaLand Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CapitaLand Investment has no effect on the direction of Adler Group i.e., Adler Group and CapitaLand Investment go up and down completely randomly.
Pair Corralation between Adler Group and CapitaLand Investment
If you would invest 199.00 in CapitaLand Investment Limited on October 20, 2024 and sell it today you would earn a total of 0.00 from holding CapitaLand Investment Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Adler Group SA vs. CapitaLand Investment Limited
Performance |
| Timeline |
| Adler Group SA |
| CapitaLand Investment |
Adler Group and CapitaLand Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adler Group and CapitaLand Investment
The main advantage of trading using opposite Adler Group and CapitaLand Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adler Group position performs unexpectedly, CapitaLand Investment 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 Investment will offset losses from the drop in CapitaLand Investment's long position.| Adler Group vs. Aztec Land Comb | Adler Group vs. Bridgemarq Real Estate | Adler Group vs. Ambase Corp | Adler Group vs. Agritek Holdings |
| CapitaLand Investment vs. IRSA Inversiones Y | CapitaLand Investment vs. Anywhere Real Estate | CapitaLand Investment vs. Newmark Group | CapitaLand Investment vs. Wharf Real Estate |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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