Correlation Between CapitaLand Investment and NSTAR
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By analyzing existing cross correlation between CapitaLand Investment Limited and NSTAR Electric Co, you can compare the effects of market volatilities on CapitaLand Investment and NSTAR 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 NSTAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and NSTAR.
Diversification Opportunities for CapitaLand Investment and NSTAR
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CapitaLand and NSTAR is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and NSTAR Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NSTAR Electric 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 NSTAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NSTAR Electric has no effect on the direction of CapitaLand Investment i.e., CapitaLand Investment and NSTAR go up and down completely randomly.
Pair Corralation between CapitaLand Investment and NSTAR
Assuming the 90 days horizon CapitaLand Investment Limited is expected to under-perform the NSTAR. In addition to that, CapitaLand Investment is 1.64 times more volatile than NSTAR Electric Co. It trades about -0.22 of its total potential returns per unit of risk. NSTAR Electric Co is currently generating about -0.22 per unit of volatility. If you would invest 9,443 in NSTAR Electric Co on September 4, 2024 and sell it today you would lose (415.00) from holding NSTAR Electric Co or give up 4.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 80.0% |
| Values | Daily Returns |
CapitaLand Investment Limited vs. NSTAR Electric Co
Performance |
| Timeline |
| CapitaLand Investment |
| NSTAR Electric |
CapitaLand Investment and NSTAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Investment and NSTAR
The main advantage of trading using opposite CapitaLand Investment and NSTAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment position performs unexpectedly, NSTAR 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 NSTAR will offset losses from the drop in NSTAR'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 |
| NSTAR vs. RBC Bearings Incorporated | NSTAR vs. Globalfoundries | NSTAR vs. Mannatech Incorporated | NSTAR vs. Spectrum Brands Holdings |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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