Correlation Between Hawkins and CapitaLand Investment
Can any of the company-specific risk be diversified away by investing in both Hawkins 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 Hawkins and CapitaLand Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawkins and CapitaLand Investment Limited, you can compare the effects of market volatilities on Hawkins 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 Hawkins with a short position of CapitaLand Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawkins and CapitaLand Investment.
Diversification Opportunities for Hawkins and CapitaLand Investment
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hawkins and CapitaLand is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Hawkins and CapitaLand Investment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Investment and Hawkins 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 Hawkins 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 Hawkins i.e., Hawkins and CapitaLand Investment go up and down completely randomly.
Pair Corralation between Hawkins and CapitaLand Investment
If you would invest 199.00 in CapitaLand Investment Limited on October 22, 2024 and sell it today you would earn a total of 0.00 from holding CapitaLand Investment Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Hawkins vs. CapitaLand Investment Limited
Performance |
| Timeline |
| Hawkins |
| CapitaLand Investment |
Hawkins and CapitaLand Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawkins and CapitaLand Investment
The main advantage of trading using opposite Hawkins and CapitaLand Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawkins 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.| Hawkins vs. H B Fuller | Hawkins vs. Minerals Technologies | Hawkins vs. Quaker Chemical | Hawkins vs. Oil Dri |
| CapitaLand Investment vs. IRSA Inversiones Y | CapitaLand Investment vs. Anywhere Real Estate | CapitaLand Investment vs. Newmark Group | CapitaLand Investment vs. Wharf Real Estate |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |