Correlation Between CapitaLand Investment and Nxt ID
Can any of the company-specific risk be diversified away by investing in both CapitaLand Investment and Nxt ID 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 Nxt ID 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 Nxt ID Inc, you can compare the effects of market volatilities on CapitaLand Investment and Nxt ID 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 Nxt ID. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and Nxt ID.
Diversification Opportunities for CapitaLand Investment and Nxt ID
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CapitaLand and Nxt is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and Nxt ID Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nxt ID Inc 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 Nxt ID. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nxt ID Inc has no effect on the direction of CapitaLand Investment i.e., CapitaLand Investment and Nxt ID go up and down completely randomly.
Pair Corralation between CapitaLand Investment and Nxt ID
If you would invest (100.00) in Nxt ID Inc on September 12, 2024 and sell it today you would earn a total of 100.00 from holding Nxt ID Inc or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CapitaLand Investment Limited vs. Nxt ID Inc
Performance |
| Timeline |
| CapitaLand Investment |
| Nxt ID Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CapitaLand Investment and Nxt ID Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Investment and Nxt ID
The main advantage of trading using opposite CapitaLand Investment and Nxt ID positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment position performs unexpectedly, Nxt ID 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 Nxt ID will offset losses from the drop in Nxt ID'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 |
| Nxt ID vs. Stagwell | Nxt ID vs. BOS Better Online | Nxt ID vs. CarsalesCom Ltd ADR | Nxt ID vs. Xunlei Ltd Adr |
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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