Correlation Between MICRONIC MYDATA and CapitaLand Investment

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

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

Diversification Opportunities for MICRONIC MYDATA and CapitaLand Investment

-0.42

Correlation Coefficient

MICRONIC MYDATA  CapitaLand Investment

Very good diversification

The 3 months correlation between MICRONIC and CapitaLand is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding MICRONIC MYDATA and CapitaLand Investment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Investment and MICRONIC MYDATA 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 MICRONIC MYDATA 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 MICRONIC MYDATA i.e., MICRONIC MYDATA and CapitaLand Investment go up and down completely randomly.

Pair Corralation between MICRONIC MYDATA and CapitaLand Investment

Assuming the 90 days trading horizon MICRONIC MYDATA is expected to under-perform the CapitaLand Investment. In addition to that, MICRONIC MYDATA is 1.24 times more volatile than CapitaLand Investment Limited. It trades about -0.05 of its total potential returns per unit of risk. CapitaLand Investment Limited is currently generating about -0.05 per unit of volatility. If you would invest  189.00  in CapitaLand Investment Limited on October 7, 2024 and sell it today you would lose (2.00) from holding CapitaLand Investment Limited or give up 1.06% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

MICRONIC MYDATA  vs.  CapitaLand Investment Limited

MICRONIC MYDATA

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in MICRONIC MYDATA are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, MICRONIC MYDATA may actually be approaching a critical reversion point that can send shares even higher in February 2025.

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 latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with MICRONIC MYDATA and CapitaLand Investment

The main advantage of trading using opposite MICRONIC MYDATA and CapitaLand Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MICRONIC MYDATA 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.

The idea behind MICRONIC MYDATA and CapitaLand Investment Limited 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.