Correlation Between CapitaLand Integrated and Klépierre
Can any of the company-specific risk be diversified away by investing in both CapitaLand Integrated and Klépierre 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 Klépierre 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 Klpierre SA, you can compare the effects of market volatilities on CapitaLand Integrated and Klépierre 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 Klépierre. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Integrated and Klépierre.
Diversification Opportunities for CapitaLand Integrated and Klépierre
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CapitaLand and Klépierre is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Integrated Commerci and Klpierre SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klpierre SA 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 Klépierre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klpierre SA has no effect on the direction of CapitaLand Integrated i.e., CapitaLand Integrated and Klépierre go up and down completely randomly.
Pair Corralation between CapitaLand Integrated and Klépierre
Assuming the 90 days horizon CapitaLand Integrated Commercial is expected to generate 3.15 times more return on investment than Klépierre. However, CapitaLand Integrated is 3.15 times more volatile than Klpierre SA. It trades about 0.26 of its potential returns per unit of risk. Klpierre SA is currently generating about 0.12 per unit of risk. If you would invest 126.00 in CapitaLand Integrated Commercial on November 4, 2024 and sell it today you would earn a total of 19.00 from holding CapitaLand Integrated Commercial or generate 15.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CapitaLand Integrated Commerci vs. Klpierre SA
Performance |
| Timeline |
| CapitaLand Integrated |
| Klpierre SA |
CapitaLand Integrated and Klépierre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Integrated and Klépierre
The main advantage of trading using opposite CapitaLand Integrated and Klépierre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Integrated position performs unexpectedly, Klépierre 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 Klépierre will offset losses from the drop in Klépierre's long position.| CapitaLand Integrated vs. Regency Centers | CapitaLand Integrated vs. Getty Realty | CapitaLand Integrated vs. Site Centers Corp | CapitaLand Integrated vs. Brixmor Property |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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