Correlation Between American Funds and CapitaLand Investment
Can any of the company-specific risk be diversified away by investing in both American Funds 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 American Funds and CapitaLand Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Funds Fundamental and CapitaLand Investment Limited, you can compare the effects of market volatilities on American Funds 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 American Funds with a short position of CapitaLand Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and CapitaLand Investment.
Diversification Opportunities for American Funds and CapitaLand Investment
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and CapitaLand is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Fundamental and CapitaLand Investment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Investment and American Funds 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 American Funds Fundamental 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 American Funds i.e., American Funds and CapitaLand Investment go up and down completely randomly.
Pair Corralation between American Funds and CapitaLand Investment
If you would invest 8,096 in American Funds Fundamental on November 3, 2024 and sell it today you would earn a total of 322.00 from holding American Funds Fundamental or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
American Funds Fundamental vs. CapitaLand Investment Limited
Performance |
| Timeline |
| American Funds Funda |
| CapitaLand Investment |
American Funds and CapitaLand Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and CapitaLand Investment
The main advantage of trading using opposite American Funds and CapitaLand Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds 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.| American Funds vs. World Energy Fund | American Funds vs. Energy Services Fund | American Funds vs. Alpsalerian Energy Infrastructure | American Funds vs. Icon Natural Resources |
| CapitaLand Investment vs. Reliance Global Group | CapitaLand Investment vs. Gilat Satellite Networks | CapitaLand Investment vs. Check Point Software | CapitaLand Investment vs. LightPath Technologies |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |