Correlation Between Weibo Corp and Mapletree Industrial
Can any of the company-specific risk be diversified away by investing in both Weibo Corp and Mapletree Industrial 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 Weibo Corp and Mapletree Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weibo Corp and Mapletree Industrial Trust, you can compare the effects of market volatilities on Weibo Corp and Mapletree Industrial 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 Weibo Corp with a short position of Mapletree Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weibo Corp and Mapletree Industrial.
Diversification Opportunities for Weibo Corp and Mapletree Industrial
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Weibo and Mapletree is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Weibo Corp and Mapletree Industrial Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapletree Industrial and Weibo Corp 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 Weibo Corp are associated (or correlated) with Mapletree Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapletree Industrial has no effect on the direction of Weibo Corp i.e., Weibo Corp and Mapletree Industrial go up and down completely randomly.
Pair Corralation between Weibo Corp and Mapletree Industrial
Allowing for the 90-day total investment horizon Weibo Corp is expected to generate 2.67 times more return on investment than Mapletree Industrial. However, Weibo Corp is 2.67 times more volatile than Mapletree Industrial Trust. It trades about 0.05 of its potential returns per unit of risk. Mapletree Industrial Trust is currently generating about -0.13 per unit of risk. If you would invest 797.00 in Weibo Corp on September 3, 2024 and sell it today you would earn a total of 163.00 from holding Weibo Corp or generate 20.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 44.58% |
| Values | Daily Returns |
Weibo Corp vs. Mapletree Industrial Trust
Performance |
| Timeline |
| Weibo Corp |
| Mapletree Industrial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Weibo Corp and Mapletree Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weibo Corp and Mapletree Industrial
The main advantage of trading using opposite Weibo Corp and Mapletree Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weibo Corp position performs unexpectedly, Mapletree Industrial 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 Industrial will offset losses from the drop in Mapletree Industrial's long position.| Weibo Corp vs. YY Inc Class | Weibo Corp vs. DouYu International Holdings | Weibo Corp vs. Tencent Music Entertainment | Weibo Corp vs. Autohome |
| Mapletree Industrial vs. Griffon | Mapletree Industrial vs. Udemy Inc | Mapletree Industrial vs. Coursera | Mapletree Industrial vs. Apogee Enterprises |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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