Correlation Between Deckers Outdoor and Mapletree Logistics
Can any of the company-specific risk be diversified away by investing in both Deckers Outdoor and Mapletree Logistics 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 Deckers Outdoor and Mapletree Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deckers Outdoor and Mapletree Logistics Trust, you can compare the effects of market volatilities on Deckers Outdoor and Mapletree Logistics 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 Deckers Outdoor with a short position of Mapletree Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deckers Outdoor and Mapletree Logistics.
Diversification Opportunities for Deckers Outdoor and Mapletree Logistics
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Deckers and Mapletree is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Deckers Outdoor and Mapletree Logistics Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapletree Logistics Trust and Deckers Outdoor 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 Deckers Outdoor are associated (or correlated) with Mapletree Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapletree Logistics Trust has no effect on the direction of Deckers Outdoor i.e., Deckers Outdoor and Mapletree Logistics go up and down completely randomly.
Pair Corralation between Deckers Outdoor and Mapletree Logistics
Given the investment horizon of 90 days Deckers Outdoor is expected to generate 0.7 times more return on investment than Mapletree Logistics. However, Deckers Outdoor is 1.43 times less risky than Mapletree Logistics. It trades about 0.19 of its potential returns per unit of risk. Mapletree Logistics Trust is currently generating about -0.03 per unit of risk. If you would invest 15,319 in Deckers Outdoor on September 12, 2024 and sell it today you would earn a total of 4,893 from holding Deckers Outdoor or generate 31.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deckers Outdoor vs. Mapletree Logistics Trust
Performance |
| Timeline |
| Deckers Outdoor |
| Mapletree Logistics Trust |
Deckers Outdoor and Mapletree Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deckers Outdoor and Mapletree Logistics
The main advantage of trading using opposite Deckers Outdoor and Mapletree Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deckers Outdoor position performs unexpectedly, Mapletree Logistics 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 Logistics will offset losses from the drop in Mapletree Logistics' long position.| Deckers Outdoor vs. On Holding | Deckers Outdoor vs. Skechers USA | Deckers Outdoor vs. Nike Inc | Deckers Outdoor vs. Steven Madden |
| Mapletree Logistics vs. enVVeno Medical Corp | Mapletree Logistics vs. BCE Inc | Mapletree Logistics vs. Sphere Entertainment Co | Mapletree Logistics vs. Omni Health |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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