Correlation Between CapitaLand Integrated and Agree Realty
Can any of the company-specific risk be diversified away by investing in both CapitaLand Integrated and Agree Realty 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 Integrated and Agree Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CapitaLand Integrated Commercial and Agree Realty, you can compare the effects of market volatilities on CapitaLand Integrated and Agree Realty 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 Integrated with a short position of Agree Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Integrated and Agree Realty.
Diversification Opportunities for CapitaLand Integrated and Agree Realty
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CapitaLand and Agree is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Integrated Commerci and Agree Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agree Realty and CapitaLand Integrated 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 Integrated Commercial are associated (or correlated) with Agree Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agree Realty has no effect on the direction of CapitaLand Integrated i.e., CapitaLand Integrated and Agree Realty go up and down completely randomly.
Pair Corralation between CapitaLand Integrated and Agree Realty
Assuming the 90 days horizon CapitaLand Integrated Commercial is expected to generate 4.11 times more return on investment than Agree Realty. However, CapitaLand Integrated is 4.11 times more volatile than Agree Realty. It trades about 0.1 of its potential returns per unit of risk. Agree Realty is currently generating about -0.2 per unit of risk. If you would invest 136.00 in CapitaLand Integrated Commercial on September 14, 2024 and sell it today you would earn a total of 9.00 from holding CapitaLand Integrated Commercial or generate 6.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CapitaLand Integrated Commerci vs. Agree Realty
Performance |
| Timeline |
| CapitaLand Integrated |
| Agree Realty |
CapitaLand Integrated and Agree Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Integrated and Agree Realty
The main advantage of trading using opposite CapitaLand Integrated and Agree Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Integrated position performs unexpectedly, Agree Realty 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 Agree Realty will offset losses from the drop in Agree Realty's long position.| CapitaLand Integrated vs. Regency Centers | CapitaLand Integrated vs. Getty Realty | CapitaLand Integrated vs. Site Centers Corp | CapitaLand Integrated vs. Brixmor Property |
| Agree Realty vs. Federal Realty Investment | Agree Realty vs. Regency Centers | Agree Realty vs. Netstreit Corp | Agree Realty vs. Kimco Realty |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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