Correlation Between CapitaLand Investment and 05329WAN2
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By analyzing existing cross correlation between CapitaLand Investment Limited and AutoNation 35 percent, you can compare the effects of market volatilities on CapitaLand Investment and 05329WAN2 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 05329WAN2. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and 05329WAN2.
Diversification Opportunities for CapitaLand Investment and 05329WAN2
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CapitaLand and 05329WAN2 is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and AutoNation 35 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AutoNation 35 percent 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 05329WAN2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AutoNation 35 percent has no effect on the direction of CapitaLand Investment i.e., CapitaLand Investment and 05329WAN2 go up and down completely randomly.
Pair Corralation between CapitaLand Investment and 05329WAN2
Assuming the 90 days horizon CapitaLand Investment Limited is expected to under-perform the 05329WAN2. In addition to that, CapitaLand Investment is 4.78 times more volatile than AutoNation 35 percent. It trades about -0.07 of its total potential returns per unit of risk. AutoNation 35 percent is currently generating about -0.11 per unit of volatility. If you would invest 9,942 in AutoNation 35 percent on September 3, 2024 and sell it today you would lose (263.00) from holding AutoNation 35 percent or give up 2.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 76.56% |
| Values | Daily Returns |
CapitaLand Investment Limited vs. AutoNation 35 percent
Performance |
| Timeline |
| CapitaLand Investment |
| AutoNation 35 percent |
CapitaLand Investment and 05329WAN2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Investment and 05329WAN2
The main advantage of trading using opposite CapitaLand Investment and 05329WAN2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment position performs unexpectedly, 05329WAN2 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 05329WAN2 will offset losses from the drop in 05329WAN2'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 |
| 05329WAN2 vs. Bill Com Holdings | 05329WAN2 vs. Tencent Music Entertainment | 05329WAN2 vs. ServiceNow | 05329WAN2 vs. CapitaLand Investment Limited |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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