Correlation Between International Land and Daiwa House
Can any of the company-specific risk be diversified away by investing in both International Land and Daiwa House 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 International Land and Daiwa House into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Land Alliance and Daiwa House Industry, you can compare the effects of market volatilities on International Land and Daiwa House 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 International Land with a short position of Daiwa House. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Land and Daiwa House.
Diversification Opportunities for International Land and Daiwa House
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Daiwa is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding International Land Alliance and Daiwa House Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daiwa House Industry and International Land 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 International Land Alliance are associated (or correlated) with Daiwa House. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daiwa House Industry has no effect on the direction of International Land i.e., International Land and Daiwa House go up and down completely randomly.
Pair Corralation between International Land and Daiwa House
Given the investment horizon of 90 days International Land Alliance is expected to generate 11.37 times more return on investment than Daiwa House. However, International Land is 11.37 times more volatile than Daiwa House Industry. It trades about 0.07 of its potential returns per unit of risk. Daiwa House Industry is currently generating about 0.06 per unit of risk. If you would invest 12.00 in International Land Alliance on November 2, 2024 and sell it today you would earn a total of 3.00 from holding International Land Alliance or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Land Alliance vs. Daiwa House Industry
Performance |
| Timeline |
| International Land |
| Daiwa House Industry |
International Land and Daiwa House Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Land and Daiwa House
The main advantage of trading using opposite International Land and Daiwa House positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Land position performs unexpectedly, Daiwa House 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 Daiwa House will offset losses from the drop in Daiwa House's long position.| International Land vs. Hong Kong Land | International Land vs. Wharf Holdings | International Land vs. Holiday Island Holdings | International Land vs. Sun Hung Kai |
| Daiwa House vs. Sino Land Co | Daiwa House vs. Sun Hung Kai | Daiwa House vs. Holiday Island Holdings | Daiwa House vs. China Overseas Land |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |