Correlation Between CapitaLand Investment and SM Investments
Can any of the company-specific risk be diversified away by investing in both CapitaLand Investment and SM Investments 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 SM Investments 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 SM Investments, you can compare the effects of market volatilities on CapitaLand Investment and SM Investments 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 SM Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and SM Investments.
Diversification Opportunities for CapitaLand Investment and SM Investments
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CapitaLand and SVTMF is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and SM Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SM Investments 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 SM Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SM Investments has no effect on the direction of CapitaLand Investment i.e., CapitaLand Investment and SM Investments go up and down completely randomly.
Pair Corralation between CapitaLand Investment and SM Investments
If you would invest 199.00 in CapitaLand Investment Limited on November 4, 2024 and sell it today you would earn a total of 0.00 from holding CapitaLand Investment Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
CapitaLand Investment Limited vs. SM Investments
Performance |
| Timeline |
| CapitaLand Investment |
| SM Investments |
CapitaLand Investment and SM Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Investment and SM Investments
The main advantage of trading using opposite CapitaLand Investment and SM Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment position performs unexpectedly, SM Investments 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 SM Investments will offset losses from the drop in SM Investments' 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 |
| SM Investments vs. Lianhua Supermarket Holdings | SM Investments vs. AMCON Distributing | SM Investments vs. WK Kellogg Co | SM Investments vs. Healthy Coffee International |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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