Correlation Between Mapletree Industrial and NIPPON PROLOGIS
Can any of the company-specific risk be diversified away by investing in both Mapletree Industrial and NIPPON PROLOGIS 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 NIPPON PROLOGIS 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 NIPPON PROLOGIS REIT, you can compare the effects of market volatilities on Mapletree Industrial and NIPPON PROLOGIS 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 NIPPON PROLOGIS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mapletree Industrial and NIPPON PROLOGIS.
Diversification Opportunities for Mapletree Industrial and NIPPON PROLOGIS
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mapletree and NIPPON is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Mapletree Industrial Trust and NIPPON PROLOGIS REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIPPON PROLOGIS REIT 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 NIPPON PROLOGIS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIPPON PROLOGIS REIT has no effect on the direction of Mapletree Industrial i.e., Mapletree Industrial and NIPPON PROLOGIS go up and down completely randomly.
Pair Corralation between Mapletree Industrial and NIPPON PROLOGIS
Assuming the 90 days horizon Mapletree Industrial Trust is expected to generate 0.9 times more return on investment than NIPPON PROLOGIS. However, Mapletree Industrial Trust is 1.12 times less risky than NIPPON PROLOGIS. It trades about -0.12 of its potential returns per unit of risk. NIPPON PROLOGIS REIT is currently generating about -0.22 per unit of risk. If you would invest 167.00 in Mapletree Industrial Trust on September 12, 2024 and sell it today you would lose (15.00) from holding Mapletree Industrial Trust or give up 8.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Mapletree Industrial Trust vs. NIPPON PROLOGIS REIT
Performance |
| Timeline |
| Mapletree Industrial |
| NIPPON PROLOGIS REIT |
Mapletree Industrial and NIPPON PROLOGIS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mapletree Industrial and NIPPON PROLOGIS
The main advantage of trading using opposite Mapletree Industrial and NIPPON PROLOGIS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mapletree Industrial position performs unexpectedly, NIPPON PROLOGIS 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 NIPPON PROLOGIS will offset losses from the drop in NIPPON PROLOGIS's long position.| Mapletree Industrial vs. Diamyd Medical AB | Mapletree Industrial vs. Mitsui Chemicals | Mapletree Industrial vs. AIR PRODCHEMICALS | Mapletree Industrial vs. CompuGroup Medical SE |
| NIPPON PROLOGIS vs. NTG Nordic Transport | NIPPON PROLOGIS vs. EVS Broadcast Equipment | NIPPON PROLOGIS vs. Westinghouse Air Brake | NIPPON PROLOGIS vs. Canadian Utilities Limited |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |