Correlation Between CapitaLand Investment and Mannatech Incorporated
Can any of the company-specific risk be diversified away by investing in both CapitaLand Investment and Mannatech Incorporated 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 Mannatech Incorporated 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 Mannatech Incorporated, you can compare the effects of market volatilities on CapitaLand Investment and Mannatech Incorporated 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 Mannatech Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and Mannatech Incorporated.
Diversification Opportunities for CapitaLand Investment and Mannatech Incorporated
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CapitaLand and Mannatech is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and Mannatech Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mannatech Incorporated 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 Mannatech Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mannatech Incorporated has no effect on the direction of CapitaLand Investment i.e., CapitaLand Investment and Mannatech Incorporated go up and down completely randomly.
Pair Corralation between CapitaLand Investment and Mannatech Incorporated
Assuming the 90 days horizon CapitaLand Investment is expected to generate 38.06 times less return on investment than Mannatech Incorporated. But when comparing it to its historical volatility, CapitaLand Investment Limited is 10.17 times less risky than Mannatech Incorporated. It trades about 0.01 of its potential returns per unit of risk. Mannatech Incorporated is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,123 in Mannatech Incorporated on September 3, 2024 and sell it today you would lose (1,273) from holding Mannatech Incorporated or give up 59.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.34% |
| Values | Daily Returns |
CapitaLand Investment Limited vs. Mannatech Incorporated
Performance |
| Timeline |
| CapitaLand Investment |
| Mannatech Incorporated |
CapitaLand Investment and Mannatech Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Investment and Mannatech Incorporated
The main advantage of trading using opposite CapitaLand Investment and Mannatech Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment position performs unexpectedly, Mannatech Incorporated 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 Mannatech Incorporated will offset losses from the drop in Mannatech Incorporated's 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 |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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