Correlation Between Mapletree Industrial and Haier Smart
Can any of the company-specific risk be diversified away by investing in both Mapletree Industrial and Haier Smart 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 Mapletree Industrial and Haier Smart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mapletree Industrial Trust and Haier Smart Home, you can compare the effects of market volatilities on Mapletree Industrial and Haier Smart 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 Mapletree Industrial with a short position of Haier Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mapletree Industrial and Haier Smart.
Diversification Opportunities for Mapletree Industrial and Haier Smart
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mapletree and Haier is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Mapletree Industrial Trust and Haier Smart Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haier Smart Home and Mapletree Industrial 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 Mapletree Industrial Trust are associated (or correlated) with Haier Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haier Smart Home has no effect on the direction of Mapletree Industrial i.e., Mapletree Industrial and Haier Smart go up and down completely randomly.
Pair Corralation between Mapletree Industrial and Haier Smart
Assuming the 90 days horizon Mapletree Industrial Trust is expected to generate 0.79 times more return on investment than Haier Smart. However, Mapletree Industrial Trust is 1.26 times less risky than Haier Smart. It trades about 0.01 of its potential returns per unit of risk. Haier Smart Home is currently generating about -0.01 per unit of risk. If you would invest 160.00 in Mapletree Industrial Trust on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Mapletree Industrial Trust or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mapletree Industrial Trust vs. Haier Smart Home
Performance |
| Timeline |
| Mapletree Industrial |
| Haier Smart Home |
Mapletree Industrial and Haier Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mapletree Industrial and Haier Smart
The main advantage of trading using opposite Mapletree Industrial and Haier Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mapletree Industrial position performs unexpectedly, Haier Smart 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 Haier Smart will offset losses from the drop in Haier Smart's long position.| Mapletree Industrial vs. Public Storage | Mapletree Industrial vs. Yara International ASA | Mapletree Industrial vs. Ascendas Real Estate | Mapletree Industrial vs. STAG Industrial |
| Haier Smart vs. Apple Inc | Haier Smart vs. Apple Inc | Haier Smart vs. Apple Inc | Haier Smart vs. Apple Inc |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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