Correlation Between CapitaLand Investment and EvoAir Holdings
Can any of the company-specific risk be diversified away by investing in both CapitaLand Investment and EvoAir Holdings 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 EvoAir Holdings 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 EvoAir Holdings, you can compare the effects of market volatilities on CapitaLand Investment and EvoAir Holdings 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 EvoAir Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and EvoAir Holdings.
Diversification Opportunities for CapitaLand Investment and EvoAir Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CapitaLand and EvoAir is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and EvoAir Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EvoAir Holdings 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 EvoAir Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EvoAir Holdings has no effect on the direction of CapitaLand Investment i.e., CapitaLand Investment and EvoAir Holdings go up and down completely randomly.
Pair Corralation between CapitaLand Investment and EvoAir Holdings
Assuming the 90 days horizon CapitaLand Investment Limited is expected to generate 19.11 times more return on investment than EvoAir Holdings. However, CapitaLand Investment is 19.11 times more volatile than EvoAir Holdings. It trades about 0.02 of its potential returns per unit of risk. EvoAir Holdings is currently generating about 0.06 per unit of risk. If you would invest 193.00 in CapitaLand Investment Limited on September 3, 2024 and sell it today you would lose (11.00) from holding CapitaLand Investment Limited or give up 5.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CapitaLand Investment Limited vs. EvoAir Holdings
Performance |
| Timeline |
| CapitaLand Investment |
| EvoAir Holdings |
CapitaLand Investment and EvoAir Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Investment and EvoAir Holdings
The main advantage of trading using opposite CapitaLand Investment and EvoAir Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment position performs unexpectedly, EvoAir Holdings 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 EvoAir Holdings will offset losses from the drop in EvoAir Holdings' long position.| CapitaLand Investment vs. IRSA Inversiones Y | CapitaLand Investment vs. Anywhere Real Estate | CapitaLand Investment vs. Newmark Group | CapitaLand Investment vs. Wharf Real Estate |
| EvoAir Holdings vs. Luxfer Holdings PLC | EvoAir Holdings vs. Origin Materials | EvoAir Holdings vs. Verra Mobility Corp | EvoAir Holdings vs. Saia Inc |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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