Correlation Between Link Real and CapitaLand Integrated
Can any of the company-specific risk be diversified away by investing in both Link Real 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 Link Real and CapitaLand Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Link Real Estate and CapitaLand Integrated Commercial, you can compare the effects of market volatilities on Link Real 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 Link Real with a short position of CapitaLand Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Link Real and CapitaLand Integrated.
Diversification Opportunities for Link Real and CapitaLand Integrated
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Link and CapitaLand is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Link Real Estate and CapitaLand Integrated Commerci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Integrated and Link Real 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 Link Real Estate 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 Link Real i.e., Link Real and CapitaLand Integrated go up and down completely randomly.
Pair Corralation between Link Real and CapitaLand Integrated
Assuming the 90 days horizon Link Real Estate is expected to generate 1.03 times more return on investment than CapitaLand Integrated. However, Link Real is 1.03 times more volatile than CapitaLand Integrated Commercial. It trades about -0.06 of its potential returns per unit of risk. CapitaLand Integrated Commercial is currently generating about -0.23 per unit of risk. If you would invest 445.00 in Link Real Estate on October 7, 2024 and sell it today you would lose (20.00) from holding Link Real Estate or give up 4.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Link Real Estate vs. CapitaLand Integrated Commerci
Performance |
| Timeline |
| Link Real Estate |
| CapitaLand Integrated |
Link Real and CapitaLand Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Link Real and CapitaLand Integrated
The main advantage of trading using opposite Link Real and CapitaLand Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Link Real 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.| Link Real vs. Kimco Realty | Link Real vs. Simon Property Group | Link Real vs. Saul Centers | Link Real vs. Kimco Realty |
| CapitaLand Integrated vs. Cedar Realty Trust | CapitaLand Integrated vs. Wheeler Real Estate | CapitaLand Integrated vs. Macerich Company | CapitaLand Integrated vs. Simon Property Group |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |