Correlation Between United Breweries and CapitaLand Investment
Can any of the company-specific risk be diversified away by investing in both United Breweries 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 United Breweries and CapitaLand Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Breweries Co and CapitaLand Investment Limited, you can compare the effects of market volatilities on United Breweries 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 United Breweries with a short position of CapitaLand Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Breweries and CapitaLand Investment.
Diversification Opportunities for United Breweries and CapitaLand Investment
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and CapitaLand is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding United Breweries Co and CapitaLand Investment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Investment and United Breweries 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 United Breweries Co 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 United Breweries i.e., United Breweries and CapitaLand Investment go up and down completely randomly.
Pair Corralation between United Breweries and CapitaLand Investment
Assuming the 90 days trading horizon United Breweries Co is expected to generate 1.14 times more return on investment than CapitaLand Investment. However, United Breweries is 1.14 times more volatile than CapitaLand Investment Limited. It trades about -0.03 of its potential returns per unit of risk. CapitaLand Investment Limited is currently generating about -0.17 per unit of risk. If you would invest 1,090 in United Breweries Co on October 23, 2024 and sell it today you would lose (10.00) from holding United Breweries Co or give up 0.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Breweries Co vs. CapitaLand Investment Limited
Performance |
| Timeline |
| United Breweries |
| CapitaLand Investment |
United Breweries and CapitaLand Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Breweries and CapitaLand Investment
The main advantage of trading using opposite United Breweries and CapitaLand Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Breweries 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.| United Breweries vs. Treasury Wine Estates | United Breweries vs. Corsair Gaming | United Breweries vs. NEW MILLENNIUM IRON | United Breweries vs. Tianjin Capital Environmental |
| CapitaLand Investment vs. CHEMICAL INDUSTRIES | CapitaLand Investment vs. INDO RAMA SYNTHETIC | CapitaLand Investment vs. LOANDEPOT INC A | CapitaLand Investment vs. FIRST SHIP LEASE |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |