Correlation Between Sprott Focus and CapitaLand Integrated
Can any of the company-specific risk be diversified away by investing in both Sprott Focus and CapitaLand Integrated 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 Sprott Focus and CapitaLand Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sprott Focus Trust and CapitaLand Integrated Commercial, you can compare the effects of market volatilities on Sprott Focus and CapitaLand Integrated 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 Sprott Focus with a short position of CapitaLand Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprott Focus and CapitaLand Integrated.
Diversification Opportunities for Sprott Focus and CapitaLand Integrated
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sprott and CapitaLand is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Sprott Focus Trust and CapitaLand Integrated Commerci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Integrated and Sprott Focus 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 Sprott Focus Trust are associated (or correlated) with CapitaLand Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CapitaLand Integrated has no effect on the direction of Sprott Focus i.e., Sprott Focus and CapitaLand Integrated go up and down completely randomly.
Pair Corralation between Sprott Focus and CapitaLand Integrated
Given the investment horizon of 90 days Sprott Focus is expected to generate 2.67 times less return on investment than CapitaLand Integrated. But when comparing it to its historical volatility, Sprott Focus Trust is 4.23 times less risky than CapitaLand Integrated. It trades about 0.37 of its potential returns per unit of risk. CapitaLand Integrated Commercial is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 130.00 in CapitaLand Integrated Commercial on October 22, 2024 and sell it today you would earn a total of 19.00 from holding CapitaLand Integrated Commercial or generate 14.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Sprott Focus Trust vs. CapitaLand Integrated Commerci
Performance |
| Timeline |
| Sprott Focus Trust |
| CapitaLand Integrated |
Sprott Focus and CapitaLand Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sprott Focus and CapitaLand Integrated
The main advantage of trading using opposite Sprott Focus and CapitaLand Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sprott Focus position performs unexpectedly, CapitaLand Integrated 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 Integrated will offset losses from the drop in CapitaLand Integrated's long position.| Sprott Focus vs. MFS Investment Grade | Sprott Focus vs. Eaton Vance National | Sprott Focus vs. Nuveen California Select | Sprott Focus vs. Federated Premier Municipal |
| CapitaLand Integrated vs. Regency Centers | CapitaLand Integrated vs. Getty Realty | CapitaLand Integrated vs. Site Centers Corp | CapitaLand Integrated vs. Brixmor Property |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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