Correlation Between URBAN OUTFITTERS and CapitaLand Investment
Can any of the company-specific risk be diversified away by investing in both URBAN OUTFITTERS 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 URBAN OUTFITTERS and CapitaLand Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between URBAN OUTFITTERS and CapitaLand Investment Limited, you can compare the effects of market volatilities on URBAN OUTFITTERS 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 URBAN OUTFITTERS with a short position of CapitaLand Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of URBAN OUTFITTERS and CapitaLand Investment.
Diversification Opportunities for URBAN OUTFITTERS and CapitaLand Investment
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between URBAN and CapitaLand is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding URBAN OUTFITTERS and CapitaLand Investment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Investment and URBAN OUTFITTERS 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 URBAN OUTFITTERS 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 URBAN OUTFITTERS i.e., URBAN OUTFITTERS and CapitaLand Investment go up and down completely randomly.
Pair Corralation between URBAN OUTFITTERS and CapitaLand Investment
Assuming the 90 days trading horizon URBAN OUTFITTERS is expected to generate 3.62 times more return on investment than CapitaLand Investment. However, URBAN OUTFITTERS is 3.62 times more volatile than CapitaLand Investment Limited. It trades about 0.34 of its potential returns per unit of risk. CapitaLand Investment Limited is currently generating about -0.13 per unit of risk. If you would invest 3,300 in URBAN OUTFITTERS on September 2, 2024 and sell it today you would earn a total of 1,180 from holding URBAN OUTFITTERS or generate 35.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
URBAN OUTFITTERS vs. CapitaLand Investment Limited
Performance |
| Timeline |
| URBAN OUTFITTERS |
| CapitaLand Investment |
URBAN OUTFITTERS and CapitaLand Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with URBAN OUTFITTERS and CapitaLand Investment
The main advantage of trading using opposite URBAN OUTFITTERS and CapitaLand Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if URBAN OUTFITTERS 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.| URBAN OUTFITTERS vs. SIVERS SEMICONDUCTORS AB | URBAN OUTFITTERS vs. Darden Restaurants | URBAN OUTFITTERS vs. Reliance Steel Aluminum | URBAN OUTFITTERS vs. Q2M Managementberatung AG |
| CapitaLand Investment vs. GFL ENVIRONM | CapitaLand Investment vs. Caltagirone SpA | CapitaLand Investment vs. RELIANCE STEEL AL | CapitaLand Investment vs. MITSUBISHI STEEL MFG |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |