Correlation Between Ascendas Real and Mapletree Industrial

Can any of the company-specific risk be diversified away by investing in both Ascendas Real 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 Ascendas Real and Mapletree Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ascendas Real Estate and Mapletree Industrial Trust, you can compare the effects of market volatilities on Ascendas Real 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 Ascendas Real with a short position of Mapletree Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendas Real and Mapletree Industrial.

Diversification Opportunities for Ascendas Real and Mapletree Industrial

-0.16

Correlation Coefficient

Ascendas Real  Mapletree Industrial

Good diversification

The 3 months correlation between Ascendas and Mapletree is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Ascendas Real Estate and Mapletree Industrial Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapletree Industrial and Ascendas Real 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 Ascendas Real Estate 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 Ascendas Real i.e., Ascendas Real and Mapletree Industrial go up and down completely randomly.

Pair Corralation between Ascendas Real and Mapletree Industrial

If you would invest  0.00  in Ascendas Real Estate on December 4, 2024 and sell it today you would earn a total of  0.00  from holding Ascendas Real Estate or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Ascendas Real Estate  vs.  Mapletree Industrial Trust

Ascendas Real Estate

Risk-Adjusted Performance

Weak

Over the last 90 days Ascendas Real Estate has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Ascendas Real is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Mapletree Industrial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mapletree Industrial Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain 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 Ascendas Real and Mapletree Industrial

The main advantage of trading using opposite Ascendas Real and Mapletree Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendas Real 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.

The idea behind Ascendas Real Estate and Mapletree Industrial Trust 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.