Correlation Between CapitaLand Investment and FMEGR
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By analyzing existing cross correlation between CapitaLand Investment Limited and FMEGR 3 01 DEC 31, you can compare the effects of market volatilities on CapitaLand Investment and FMEGR 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 FMEGR. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and FMEGR.
Diversification Opportunities for CapitaLand Investment and FMEGR
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between CapitaLand and FMEGR is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and FMEGR 3 01 DEC 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FMEGR 3 01 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 FMEGR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FMEGR 3 01 has no effect on the direction of CapitaLand Investment i.e., CapitaLand Investment and FMEGR go up and down completely randomly.
Pair Corralation between CapitaLand Investment and FMEGR
Assuming the 90 days horizon CapitaLand Investment Limited is expected to under-perform the FMEGR. In addition to that, CapitaLand Investment is 2.62 times more volatile than FMEGR 3 01 DEC 31. It trades about -0.07 of its total potential returns per unit of risk. FMEGR 3 01 DEC 31 is currently generating about -0.06 per unit of volatility. If you would invest 8,463 in FMEGR 3 01 DEC 31 on September 3, 2024 and sell it today you would lose (135.00) from holding FMEGR 3 01 DEC 31 or give up 1.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 43.75% |
| Values | Daily Returns |
CapitaLand Investment Limited vs. FMEGR 3 01 DEC 31
Performance |
| Timeline |
| CapitaLand Investment |
| FMEGR 3 01 |
CapitaLand Investment and FMEGR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Investment and FMEGR
The main advantage of trading using opposite CapitaLand Investment and FMEGR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment position performs unexpectedly, FMEGR 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 FMEGR will offset losses from the drop in FMEGR'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 |
| FMEGR vs. CapitaLand Investment Limited | FMEGR vs. Boyd Gaming | FMEGR vs. Biglari Holdings | FMEGR vs. Aegon NV ADR |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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