Correlation Between CapitaLand Investment and Nations VolDex
Can any of the company-specific risk be diversified away by investing in both CapitaLand Investment and Nations VolDex 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 Nations VolDex 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 Nations VolDex, you can compare the effects of market volatilities on CapitaLand Investment and Nations VolDex 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 Nations VolDex. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and Nations VolDex.
Diversification Opportunities for CapitaLand Investment and Nations VolDex
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CapitaLand and Nations is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and Nations VolDex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nations VolDex 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 Nations VolDex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nations VolDex has no effect on the direction of CapitaLand Investment i.e., CapitaLand Investment and Nations VolDex go up and down completely randomly.
Pair Corralation between CapitaLand Investment and Nations VolDex
Assuming the 90 days horizon CapitaLand Investment Limited is expected to generate 0.72 times more return on investment than Nations VolDex. However, CapitaLand Investment Limited is 1.4 times less risky than Nations VolDex. It trades about 0.02 of its potential returns per unit of risk. Nations VolDex is currently generating about 0.01 per unit of risk. If you would invest 226.00 in CapitaLand Investment Limited on September 14, 2024 and sell it today you would lose (27.00) from holding CapitaLand Investment Limited or give up 11.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.67% |
| Values | Daily Returns |
CapitaLand Investment Limited vs. Nations VolDex
Performance |
| Timeline |
CapitaLand Investment and Nations VolDex Volatility Contrast
Predicted Return Density |
| Returns |
CapitaLand Investment Limited
Pair trading matchups for CapitaLand Investment
Nations VolDex
Pair trading matchups for Nations VolDex
Pair Trading with CapitaLand Investment and Nations VolDex
The main advantage of trading using opposite CapitaLand Investment and Nations VolDex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment position performs unexpectedly, Nations VolDex 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 Nations VolDex will offset losses from the drop in Nations VolDex's long position.| CapitaLand Investment vs. Asia Pptys | CapitaLand Investment vs. Adler Group SA | CapitaLand Investment vs. Ambase Corp | CapitaLand Investment vs. Bridgemarq Real Estate |
| Nations VolDex vs. Coupang LLC | Nations VolDex vs. CapitaLand Investment Limited | Nations VolDex vs. Cardinal Health | Nations VolDex vs. Titan Machinery |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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