Correlation Between CapitaLand Investment and Teleflex Incorporated
Can any of the company-specific risk be diversified away by investing in both CapitaLand Investment and Teleflex 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 Teleflex 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 Teleflex Incorporated, you can compare the effects of market volatilities on CapitaLand Investment and Teleflex 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 Teleflex Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and Teleflex Incorporated.
Diversification Opportunities for CapitaLand Investment and Teleflex Incorporated
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CapitaLand and Teleflex is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and Teleflex Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleflex 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 Teleflex Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teleflex Incorporated has no effect on the direction of CapitaLand Investment i.e., CapitaLand Investment and Teleflex Incorporated go up and down completely randomly.
Pair Corralation between CapitaLand Investment and Teleflex Incorporated
Assuming the 90 days horizon CapitaLand Investment Limited is expected to generate 0.7 times more return on investment than Teleflex Incorporated. However, CapitaLand Investment Limited is 1.42 times less risky than Teleflex Incorporated. It trades about -0.22 of its potential returns per unit of risk. Teleflex Incorporated is currently generating about -0.2 per unit of risk. If you would invest 199.00 in CapitaLand Investment Limited on December 6, 2024 and sell it today you would lose (32.00) from holding CapitaLand Investment Limited or give up 16.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
CapitaLand Investment Limited vs. Teleflex Incorporated
Performance |
| Timeline |
| CapitaLand Investment |
| Teleflex Incorporated |
CapitaLand Investment and Teleflex Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Investment and Teleflex Incorporated
The main advantage of trading using opposite CapitaLand Investment and Teleflex Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment position performs unexpectedly, Teleflex 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 Teleflex Incorporated will offset losses from the drop in Teleflex 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 |
| Teleflex Incorporated vs. West Pharmaceutical Services | Teleflex Incorporated vs. Alcon AG | Teleflex Incorporated vs. ResMed Inc | Teleflex Incorporated vs. ICU Medical |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |