Correlation Between Mapletree Commercial and CapitaLand Integrated
Can any of the company-specific risk be diversified away by investing in both Mapletree Commercial 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 Mapletree Commercial and CapitaLand Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mapletree Commercial Trust and CapitaLand Integrated Commercial, you can compare the effects of market volatilities on Mapletree Commercial 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 Mapletree Commercial with a short position of CapitaLand Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mapletree Commercial and CapitaLand Integrated.
Diversification Opportunities for Mapletree Commercial and CapitaLand Integrated
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mapletree and CapitaLand is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Mapletree Commercial Trust and CapitaLand Integrated Commerci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Integrated and Mapletree Commercial 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 Commercial Trust 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 Mapletree Commercial i.e., Mapletree Commercial and CapitaLand Integrated go up and down completely randomly.
Pair Corralation between Mapletree Commercial and CapitaLand Integrated
Assuming the 90 days horizon Mapletree Commercial Trust is expected to under-perform the CapitaLand Integrated. But the pink sheet apears to be less risky and, when comparing its historical volatility, Mapletree Commercial Trust is 1.82 times less risky than CapitaLand Integrated. The pink sheet trades about -0.22 of its potential returns per unit of risk. The CapitaLand Integrated Commercial is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 136.00 in CapitaLand Integrated Commercial on September 14, 2024 and sell it today you would earn a total of 9.00 from holding CapitaLand Integrated Commercial or generate 6.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mapletree Commercial Trust vs. CapitaLand Integrated Commerci
Performance |
| Timeline |
| Mapletree Commercial |
| CapitaLand Integrated |
Mapletree Commercial and CapitaLand Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mapletree Commercial and CapitaLand Integrated
The main advantage of trading using opposite Mapletree Commercial and CapitaLand Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mapletree Commercial 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.| Mapletree Commercial vs. Slate Grocery REIT | Mapletree Commercial vs. Seritage Growth Properties | Mapletree Commercial vs. Rithm Property Trust | Mapletree Commercial vs. Smart REIT |
| CapitaLand Integrated vs. Regency Centers | CapitaLand Integrated vs. Getty Realty | CapitaLand Integrated vs. Site Centers Corp | CapitaLand Integrated vs. Brixmor Property |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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