Correlation Between CapitaLand Investment and COMSovereign Holding
Can any of the company-specific risk be diversified away by investing in both CapitaLand Investment and COMSovereign Holding 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 COMSovereign Holding 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 COMSovereign Holding Corp, you can compare the effects of market volatilities on CapitaLand Investment and COMSovereign Holding 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 COMSovereign Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and COMSovereign Holding.
Diversification Opportunities for CapitaLand Investment and COMSovereign Holding
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CapitaLand and COMSovereign is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and COMSovereign Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMSovereign Holding Corp 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 COMSovereign Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMSovereign Holding Corp has no effect on the direction of CapitaLand Investment i.e., CapitaLand Investment and COMSovereign Holding go up and down completely randomly.
Pair Corralation between CapitaLand Investment and COMSovereign Holding
If you would invest 177.00 in CapitaLand Investment Limited on September 14, 2024 and sell it today you would earn a total of 22.00 from holding CapitaLand Investment Limited or generate 12.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
CapitaLand Investment Limited vs. COMSovereign Holding Corp
Performance |
| Timeline |
| CapitaLand Investment |
| COMSovereign Holding Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CapitaLand Investment and COMSovereign Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Investment and COMSovereign Holding
The main advantage of trading using opposite CapitaLand Investment and COMSovereign Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment position performs unexpectedly, COMSovereign Holding 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 COMSovereign Holding will offset losses from the drop in COMSovereign Holding's long position.| CapitaLand Investment vs. Asia Pptys | CapitaLand Investment vs. Adler Group SA | CapitaLand Investment vs. Ambase Corp | CapitaLand Investment vs. Bridgemarq Real Estate |
| COMSovereign Holding vs. NH Foods Ltd | COMSovereign Holding vs. Hf Foods Group | COMSovereign Holding vs. BBB Foods | COMSovereign Holding vs. Bridgford Foods |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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