Correlation Between CapitaLand Investment and SITE Centers
Can any of the company-specific risk be diversified away by investing in both CapitaLand Investment and SITE Centers 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 SITE Centers 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 SITE Centers Corp, you can compare the effects of market volatilities on CapitaLand Investment and SITE Centers 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 SITE Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and SITE Centers.
Diversification Opportunities for CapitaLand Investment and SITE Centers
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CapitaLand and SITE is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and SITE Centers Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SITE Centers 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 SITE Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SITE Centers Corp has no effect on the direction of CapitaLand Investment i.e., CapitaLand Investment and SITE Centers go up and down completely randomly.
Pair Corralation between CapitaLand Investment and SITE Centers
Assuming the 90 days horizon CapitaLand Investment Limited is expected to generate 36.46 times more return on investment than SITE Centers. However, CapitaLand Investment is 36.46 times more volatile than SITE Centers Corp. It trades about 0.19 of its potential returns per unit of risk. SITE Centers Corp is currently generating about 0.16 per unit of risk. If you would invest 182.00 in CapitaLand Investment Limited on September 13, 2024 and sell it today you would earn a total of 17.00 from holding CapitaLand Investment Limited or generate 9.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 52.38% |
| Values | Daily Returns |
CapitaLand Investment Limited vs. SITE Centers Corp
Performance |
| Timeline |
| CapitaLand Investment |
| SITE Centers Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
CapitaLand Investment and SITE Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Investment and SITE Centers
The main advantage of trading using opposite CapitaLand Investment and SITE Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment position performs unexpectedly, SITE Centers 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 SITE Centers will offset losses from the drop in SITE Centers' 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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