Correlation Between NEW WORLD and GuocoLand
Can any of the company-specific risk be diversified away by investing in both NEW WORLD and GuocoLand 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 NEW WORLD and GuocoLand into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NEW WORLD DEVCO and GuocoLand Limited, you can compare the effects of market volatilities on NEW WORLD and GuocoLand 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 NEW WORLD with a short position of GuocoLand. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEW WORLD and GuocoLand.
Diversification Opportunities for NEW WORLD and GuocoLand
Very good diversification
The 3 months correlation between NEW and GuocoLand is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding NEW WORLD DEVCO and GuocoLand Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GuocoLand Limited and NEW WORLD 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 NEW WORLD DEVCO are associated (or correlated) with GuocoLand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GuocoLand Limited has no effect on the direction of NEW WORLD i.e., NEW WORLD and GuocoLand go up and down completely randomly.
Pair Corralation between NEW WORLD and GuocoLand
Assuming the 90 days trading horizon NEW WORLD DEVCO is expected to under-perform the GuocoLand. In addition to that, NEW WORLD is 18.45 times more volatile than GuocoLand Limited. It trades about -0.28 of its total potential returns per unit of risk. GuocoLand Limited is currently generating about -0.22 per unit of volatility. If you would invest 106.00 in GuocoLand Limited on September 24, 2024 and sell it today you would lose (1.00) from holding GuocoLand Limited or give up 0.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NEW WORLD DEVCO vs. GuocoLand Limited
Performance |
| Timeline |
| NEW WORLD DEVCO |
| GuocoLand Limited |
NEW WORLD and GuocoLand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEW WORLD and GuocoLand
The main advantage of trading using opposite NEW WORLD and GuocoLand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEW WORLD position performs unexpectedly, GuocoLand 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 GuocoLand will offset losses from the drop in GuocoLand's long position.| NEW WORLD vs. OPEN HOUSE GROUP | NEW WORLD vs. AEON MALL LTD | NEW WORLD vs. Hufvudstaden AB | NEW WORLD vs. FRASERS PROPERTY |
| GuocoLand vs. NEW WORLD DEVCO | GuocoLand vs. OPEN HOUSE GROUP | GuocoLand vs. AEON MALL LTD | GuocoLand vs. Hufvudstaden AB |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |