Correlation Between Retail Opportunity and Mapletree Commercial
Can any of the company-specific risk be diversified away by investing in both Retail Opportunity 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 Retail Opportunity and Mapletree Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Retail Opportunity Investments and Mapletree Commercial Trust, you can compare the effects of market volatilities on Retail Opportunity 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 Retail Opportunity with a short position of Mapletree Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Retail Opportunity and Mapletree Commercial.
Diversification Opportunities for Retail Opportunity and Mapletree Commercial
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Retail and Mapletree is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Retail Opportunity Investments and Mapletree Commercial Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapletree Commercial and Retail Opportunity 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 Retail Opportunity Investments 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 Retail Opportunity i.e., Retail Opportunity and Mapletree Commercial go up and down completely randomly.
Pair Corralation between Retail Opportunity and Mapletree Commercial
Given the investment horizon of 90 days Retail Opportunity Investments is expected to generate 0.04 times more return on investment than Mapletree Commercial. However, Retail Opportunity Investments is 25.05 times less risky than Mapletree Commercial. It trades about 0.39 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 1,733 in Retail Opportunity Investments on September 14, 2024 and sell it today you would earn a total of 11.00 from holding Retail Opportunity Investments or generate 0.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Retail Opportunity Investments vs. Mapletree Commercial Trust
Performance |
| Timeline |
| Retail Opportunity |
| Mapletree Commercial |
Retail Opportunity and Mapletree Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Retail Opportunity and Mapletree Commercial
The main advantage of trading using opposite Retail Opportunity and Mapletree Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retail Opportunity 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.| Retail Opportunity vs. Kite Realty Group | Retail Opportunity vs. Rithm Property Trust | Retail Opportunity vs. Urban Edge Properties | Retail Opportunity vs. Acadia Realty Trust |
| Mapletree Commercial vs. Slate Grocery REIT | Mapletree Commercial vs. Seritage Growth Properties | Mapletree Commercial vs. Rithm Property Trust | Mapletree Commercial vs. Smart REIT |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |