Correlation Between CT Real and CapitaLand Investment
Can any of the company-specific risk be diversified away by investing in both CT Real and CapitaLand Investment 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 CT Real and CapitaLand Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CT Real Estate and CapitaLand Investment Limited, you can compare the effects of market volatilities on CT Real and CapitaLand Investment 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 CT Real with a short position of CapitaLand Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of CT Real and CapitaLand Investment.
Diversification Opportunities for CT Real and CapitaLand Investment
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CTRRF and CapitaLand is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding CT Real Estate and CapitaLand Investment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Investment and CT Real 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 CT Real Estate are associated (or correlated) with CapitaLand Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CapitaLand Investment has no effect on the direction of CT Real i.e., CT Real and CapitaLand Investment go up and down completely randomly.
Pair Corralation between CT Real and CapitaLand Investment
If you would invest 1,037 in CT Real Estate on September 2, 2024 and sell it today you would earn a total of 0.00 from holding CT Real Estate or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
CT Real Estate vs. CapitaLand Investment Limited
Performance |
| Timeline |
| CT Real Estate |
| CapitaLand Investment |
CT Real and CapitaLand Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CT Real and CapitaLand Investment
The main advantage of trading using opposite CT Real and CapitaLand Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CT Real position performs unexpectedly, CapitaLand Investment 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 CapitaLand Investment will offset losses from the drop in CapitaLand Investment's long position.| CT Real vs. Firm Capital Property | CT Real vs. Smart REIT | CT Real vs. Slate Grocery REIT | CT Real vs. Phillips Edison Co |
| CapitaLand Investment vs. IRSA Inversiones Y | CapitaLand Investment vs. Anywhere Real Estate | CapitaLand Investment vs. Newmark Group | CapitaLand Investment vs. New York City |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |