Correlation Between CapitaLand Investment and Under Armour
Can any of the company-specific risk be diversified away by investing in both CapitaLand Investment and Under Armour 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 Under Armour 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 Under Armour C, you can compare the effects of market volatilities on CapitaLand Investment and Under Armour 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 Under Armour. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and Under Armour.
Diversification Opportunities for CapitaLand Investment and Under Armour
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between CapitaLand and Under is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and Under Armour C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Under Armour C 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 Under Armour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Under Armour C has no effect on the direction of CapitaLand Investment i.e., CapitaLand Investment and Under Armour go up and down completely randomly.
Pair Corralation between CapitaLand Investment and Under Armour
Assuming the 90 days horizon CapitaLand Investment Limited is expected to under-perform the Under Armour. In addition to that, CapitaLand Investment is 1.25 times more volatile than Under Armour C. It trades about -0.16 of its total potential returns per unit of risk. Under Armour C is currently generating about -0.17 per unit of volatility. If you would invest 737.00 in Under Armour C on November 30, 2024 and sell it today you would lose (102.00) from holding Under Armour C or give up 13.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.56% |
| Values | Daily Returns |
CapitaLand Investment Limited vs. Under Armour C
Performance |
| Timeline |
| CapitaLand Investment |
| Under Armour C |
CapitaLand Investment and Under Armour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Investment and Under Armour
The main advantage of trading using opposite CapitaLand Investment and Under Armour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment position performs unexpectedly, Under Armour 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 Under Armour will offset losses from the drop in Under Armour'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 |
| Under Armour vs. Levi Strauss Co | Under Armour vs. Columbia Sportswear | Under Armour vs. Hanesbrands | Under Armour vs. PVH Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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