Correlation Between Sezzle Common and CapitaLand Investment
Can any of the company-specific risk be diversified away by investing in both Sezzle Common and CapitaLand Investment 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 Sezzle Common and CapitaLand Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sezzle Common Stock and CapitaLand Investment Limited, you can compare the effects of market volatilities on Sezzle Common and CapitaLand Investment 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 Sezzle Common with a short position of CapitaLand Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sezzle Common and CapitaLand Investment.
Diversification Opportunities for Sezzle Common and CapitaLand Investment
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sezzle and CapitaLand is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Sezzle Common Stock and CapitaLand Investment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Investment and Sezzle Common 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 Sezzle Common Stock are associated (or correlated) with CapitaLand Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CapitaLand Investment has no effect on the direction of Sezzle Common i.e., Sezzle Common and CapitaLand Investment go up and down completely randomly.
Pair Corralation between Sezzle Common and CapitaLand Investment
Given the investment horizon of 90 days Sezzle Common Stock is expected to under-perform the CapitaLand Investment. In addition to that, Sezzle Common is 2.63 times more volatile than CapitaLand Investment Limited. It trades about -0.17 of its total potential returns per unit of risk. CapitaLand Investment Limited is currently generating about 0.19 per unit of volatility. If you would invest 182.00 in CapitaLand Investment Limited on September 12, 2024 and sell it today you would earn a total of 17.00 from holding CapitaLand Investment Limited or generate 9.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sezzle Common Stock vs. CapitaLand Investment Limited
Performance |
| Timeline |
| Sezzle Common Stock |
| CapitaLand Investment |
Sezzle Common and CapitaLand Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sezzle Common and CapitaLand Investment
The main advantage of trading using opposite Sezzle Common and CapitaLand Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sezzle Common position performs unexpectedly, CapitaLand Investment 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 Investment will offset losses from the drop in CapitaLand Investment's long position.| Sezzle Common vs. MGIC Investment Corp | Sezzle Common vs. Fidus Investment Corp | Sezzle Common vs. Western Asset Investment | Sezzle Common vs. The Wendys Co |
| CapitaLand Investment vs. IRSA Inversiones Y | CapitaLand Investment vs. Anywhere Real Estate | CapitaLand Investment vs. Newmark Group | CapitaLand Investment vs. Wharf Real Estate |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |