Correlation Between NYSE Composite and CapitaLand Integrated
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and CapitaLand Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and CapitaLand Integrated Commercial, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of CapitaLand Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and CapitaLand Integrated.
Diversification Opportunities for NYSE Composite and CapitaLand Integrated
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NYSE and CapitaLand is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and CapitaLand Integrated Commerci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Integrated and NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and CapitaLand Integrated go up and down completely randomly.
Pair Corralation between NYSE Composite and CapitaLand Integrated
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.26 times more return on investment than CapitaLand Integrated. However, NYSE Composite is 3.81 times less risky than CapitaLand Integrated. It trades about -0.28 of its potential returns per unit of risk. CapitaLand Integrated Commercial is currently generating about -0.23 per unit of risk. If you would invest 2,010,779 in NYSE Composite on October 7, 2024 and sell it today you would lose (85,350) from holding NYSE Composite or give up 4.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. CapitaLand Integrated Commerci
Performance |
| Timeline |
NYSE Composite and CapitaLand Integrated Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
CapitaLand Integrated Commercial
Pair trading matchups for CapitaLand Integrated
Pair Trading with NYSE Composite and CapitaLand Integrated
The main advantage of trading using opposite NYSE Composite and CapitaLand Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Tyson Foods | NYSE Composite vs. Fernhill Beverage | NYSE Composite vs. Boston Beer | NYSE Composite vs. Grocery Outlet Holding |
| CapitaLand Integrated vs. Cedar Realty Trust | CapitaLand Integrated vs. Wheeler Real Estate | CapitaLand Integrated vs. Macerich Company | CapitaLand Integrated vs. Simon Property Group |
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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