Correlation Between CapitaLand Integrated and Mapletree Commercial
Can any of the company-specific risk be diversified away by investing in both CapitaLand Integrated and Mapletree Commercial 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 Mapletree Commercial 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 Mapletree Commercial Trust, you can compare the effects of market volatilities on CapitaLand Integrated and Mapletree Commercial 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 Mapletree Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Integrated and Mapletree Commercial.
Diversification Opportunities for CapitaLand Integrated and Mapletree Commercial
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CapitaLand and Mapletree is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Integrated Commerci and Mapletree Commercial Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapletree Commercial 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 Mapletree Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapletree Commercial has no effect on the direction of CapitaLand Integrated i.e., CapitaLand Integrated and Mapletree Commercial go up and down completely randomly.
Pair Corralation between CapitaLand Integrated and Mapletree Commercial
Assuming the 90 days horizon CapitaLand Integrated Commercial is expected to generate 1.82 times more return on investment than Mapletree Commercial. However, CapitaLand Integrated is 1.82 times more volatile than Mapletree Commercial Trust. It trades about 0.1 of its potential returns per unit of risk. Mapletree Commercial Trust is currently generating about -0.22 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CapitaLand Integrated Commerci vs. Mapletree Commercial Trust
Performance |
| Timeline |
| CapitaLand Integrated |
| Mapletree Commercial |
CapitaLand Integrated and Mapletree Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Integrated and Mapletree Commercial
The main advantage of trading using opposite CapitaLand Integrated and Mapletree Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Integrated position performs unexpectedly, Mapletree Commercial 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 Mapletree Commercial will offset losses from the drop in Mapletree Commercial's long position.| CapitaLand Integrated vs. Regency Centers | CapitaLand Integrated vs. Getty Realty | CapitaLand Integrated vs. Site Centers Corp | CapitaLand Integrated vs. Brixmor Property |
| Mapletree Commercial vs. Slate Grocery REIT | Mapletree Commercial vs. Seritage Growth Properties | Mapletree Commercial vs. Rithm Property Trust | Mapletree Commercial vs. Smart REIT |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |