Correlation Between National Retail and Mapletree Commercial
Can any of the company-specific risk be diversified away by investing in both National Retail and Mapletree Commercial 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 Mapletree Commercial 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 Mapletree Commercial Trust, you can compare the effects of market volatilities on National Retail and Mapletree Commercial 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 Mapletree Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Retail and Mapletree Commercial.
Diversification Opportunities for National Retail and Mapletree Commercial
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between National and Mapletree is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding National Retail Properties and Mapletree Commercial Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapletree Commercial 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 Mapletree Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapletree Commercial has no effect on the direction of National Retail i.e., National Retail and Mapletree Commercial go up and down completely randomly.
Pair Corralation between National Retail and Mapletree Commercial
Considering the 90-day investment horizon National Retail Properties is expected to generate 0.43 times more return on investment than Mapletree Commercial. However, National Retail Properties is 2.31 times less risky than Mapletree Commercial. It trades about 0.01 of its potential returns per unit of risk. Mapletree Commercial Trust is currently generating about -0.22 per unit of risk. If you would invest 4,236 in National Retail Properties on September 14, 2024 and sell it today you would earn a total of 4.00 from holding National Retail Properties or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Retail Properties vs. Mapletree Commercial Trust
Performance |
| Timeline |
| National Retail Prop |
| Mapletree Commercial |
National Retail and Mapletree Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Retail and Mapletree Commercial
The main advantage of trading using opposite National Retail and Mapletree Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Retail position performs unexpectedly, Mapletree Commercial 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 Mapletree Commercial will offset losses from the drop in Mapletree Commercial'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 |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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