Correlation Between CapitaLand Integrated and Simon Property
Can any of the company-specific risk be diversified away by investing in both CapitaLand Integrated and Simon Property 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 Simon Property 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 Simon Property Group, you can compare the effects of market volatilities on CapitaLand Integrated and Simon Property 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 Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Integrated and Simon Property.
Diversification Opportunities for CapitaLand Integrated and Simon Property
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CapitaLand and Simon is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Integrated Commerci and Simon Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simon Property Group 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 Simon Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simon Property Group has no effect on the direction of CapitaLand Integrated i.e., CapitaLand Integrated and Simon Property go up and down completely randomly.
Pair Corralation between CapitaLand Integrated and Simon Property
Assuming the 90 days horizon CapitaLand Integrated Commercial is expected to generate 4.33 times more return on investment than Simon Property. However, CapitaLand Integrated is 4.33 times more volatile than Simon Property Group. It trades about 0.1 of its potential returns per unit of risk. Simon Property Group is currently generating about 0.01 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CapitaLand Integrated Commerci vs. Simon Property Group
Performance |
| Timeline |
| CapitaLand Integrated |
| Simon Property Group |
CapitaLand Integrated and Simon Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Integrated and Simon Property
The main advantage of trading using opposite CapitaLand Integrated and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Integrated position performs unexpectedly, Simon Property 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 Simon Property will offset losses from the drop in Simon Property's long position.| CapitaLand Integrated vs. Regency Centers | CapitaLand Integrated vs. Getty Realty | CapitaLand Integrated vs. Site Centers Corp | CapitaLand Integrated vs. Brixmor Property |
| Simon Property vs. Site Centers Corp | Simon Property vs. CBL Associates Properties | Simon Property vs. Urban Edge Properties | Simon Property vs. Acadia Realty Trust |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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