Correlation Between CapitaLand Investment and 04685A2Z3

Can any of the company-specific risk be diversified away by investing in both CapitaLand Investment and 04685A2Z3 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 CapitaLand Investment and 04685A2Z3 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CapitaLand Investment Limited and ATH 1608 29 JUN 26, you can compare the effects of market volatilities on CapitaLand Investment and 04685A2Z3 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 CapitaLand Investment with a short position of 04685A2Z3. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and 04685A2Z3.

Diversification Opportunities for CapitaLand Investment and 04685A2Z3

-0.22

Correlation Coefficient

CapitaLand Investment  04685A2Z3

Very good diversification

The 3 months correlation between CapitaLand and 04685A2Z3 is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and ATH 1608 29 JUN 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATH 1608 29 and CapitaLand Investment 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 CapitaLand Investment Limited are associated (or correlated) with 04685A2Z3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATH 1608 29 has no effect on the direction of CapitaLand Investment i.e., CapitaLand Investment and 04685A2Z3 go up and down completely randomly.

Pair Corralation between CapitaLand Investment and 04685A2Z3

Assuming the 90 days horizon CapitaLand Investment Limited is expected to generate 3.9 times more return on investment than 04685A2Z3. However, CapitaLand Investment is 3.9 times more volatile than ATH 1608 29 JUN 26. It trades about 0.01 of its potential returns per unit of risk. ATH 1608 29 JUN 26 is currently generating about 0.01 per unit of risk. If you would invest  251.00  in CapitaLand Investment Limited on October 12, 2024 and sell it today you would lose (52.00) from holding CapitaLand Investment Limited or give up 20.72% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	42.42%
Values	Daily Returns

CapitaLand Investment Limited  vs.  ATH 1608 29 JUN 26

CapitaLand Investment

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CapitaLand Investment Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's essential indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

ATH 1608 29

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATH 1608 29 JUN 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for ATH 1608 29 JUN 26 investors.

Pair Trading with CapitaLand Investment and 04685A2Z3

The main advantage of trading using opposite CapitaLand Investment and 04685A2Z3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment position performs unexpectedly, 04685A2Z3 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 04685A2Z3 will offset losses from the drop in 04685A2Z3's long position.

The idea behind CapitaLand Investment Limited and ATH 1608 29 JUN 26 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.