Correlation Between CapitaLand Investment and Old Republic
Can any of the company-specific risk be diversified away by investing in both CapitaLand Investment and Old Republic 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 Old Republic 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 Old Republic International, you can compare the effects of market volatilities on CapitaLand Investment and Old Republic 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 Old Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and Old Republic.
Diversification Opportunities for CapitaLand Investment and Old Republic
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CapitaLand and Old is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and Old Republic International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Republic Interna 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 Old Republic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Republic Interna has no effect on the direction of CapitaLand Investment i.e., CapitaLand Investment and Old Republic go up and down completely randomly.
Pair Corralation between CapitaLand Investment and Old Republic
Assuming the 90 days horizon CapitaLand Investment Limited is expected to under-perform the Old Republic. In addition to that, CapitaLand Investment is 2.13 times more volatile than Old Republic International. It trades about -0.07 of its total potential returns per unit of risk. Old Republic International is currently generating about 0.14 per unit of volatility. If you would invest 3,549 in Old Republic International on September 2, 2024 and sell it today you would earn a total of 348.00 from holding Old Republic International or generate 9.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CapitaLand Investment Limited vs. Old Republic International
Performance |
| Timeline |
| CapitaLand Investment |
| Old Republic Interna |
CapitaLand Investment and Old Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Investment and Old Republic
The main advantage of trading using opposite CapitaLand Investment and Old Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment position performs unexpectedly, Old Republic 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 Old Republic will offset losses from the drop in Old Republic's long position.| CapitaLand Investment vs. IRSA Inversiones Y | CapitaLand Investment vs. Anywhere Real Estate | CapitaLand Investment vs. Newmark Group | CapitaLand Investment vs. New York City |
| Old Republic vs. Axa Equitable Holdings | Old Republic vs. American International Group | Old Republic vs. Arch Capital Group | Old Republic vs. Sun Life Financial |
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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