Correlation Between National Retail and CapitaLand Integrated
Can any of the company-specific risk be diversified away by investing in both National Retail 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 National Retail and CapitaLand Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Retail Properties and CapitaLand Integrated Commercial, you can compare the effects of market volatilities on National Retail 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 National Retail with a short position of CapitaLand Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Retail and CapitaLand Integrated.
Diversification Opportunities for National Retail and CapitaLand Integrated
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between National and CapitaLand is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding National Retail Properties and CapitaLand Integrated Commerci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Integrated and National Retail 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 National Retail Properties 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 National Retail i.e., National Retail and CapitaLand Integrated go up and down completely randomly.
Pair Corralation between National Retail and CapitaLand Integrated
Considering the 90-day investment horizon National Retail is expected to generate 46.34 times less return on investment than CapitaLand Integrated. But when comparing it to its historical volatility, National Retail Properties is 4.2 times less risky than CapitaLand Integrated. It trades about 0.01 of its potential returns per unit of risk. 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Retail Properties vs. CapitaLand Integrated Commerci
Performance |
| Timeline |
| National Retail Prop |
| CapitaLand Integrated |
National Retail and CapitaLand Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Retail and CapitaLand Integrated
The main advantage of trading using opposite National Retail and CapitaLand Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Retail 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.| National Retail vs. Site Centers Corp | National Retail vs. CBL Associates Properties | National Retail vs. Urban Edge Properties | National Retail vs. Acadia Realty Trust |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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