Correlation Between Valens and CapitaLand Investment
Can any of the company-specific risk be diversified away by investing in both Valens 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 Valens and CapitaLand Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valens and CapitaLand Investment Limited, you can compare the effects of market volatilities on Valens 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 Valens with a short position of CapitaLand Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valens and CapitaLand Investment.
Diversification Opportunities for Valens and CapitaLand Investment
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Valens and CapitaLand is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Valens and CapitaLand Investment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Investment and Valens 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 Valens 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 Valens i.e., Valens and CapitaLand Investment go up and down completely randomly.
Pair Corralation between Valens and CapitaLand Investment
Considering the 90-day investment horizon Valens is expected to generate 2.29 times more return on investment than CapitaLand Investment. However, Valens is 2.29 times more volatile than CapitaLand Investment Limited. It trades about -0.04 of its potential returns per unit of risk. CapitaLand Investment Limited is currently generating about -0.21 per unit of risk. If you would invest 195.00 in Valens on August 30, 2024 and sell it today you would lose (11.00) from holding Valens or give up 5.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Valens vs. CapitaLand Investment Limited
Performance |
| Timeline |
| Valens |
| CapitaLand Investment |
Valens and CapitaLand Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valens and CapitaLand Investment
The main advantage of trading using opposite Valens and CapitaLand Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valens 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.| Valens vs. ABIVAX Socit Anonyme | Valens vs. Morningstar Unconstrained Allocation | Valens vs. SPACE | Valens vs. Knife River |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |