Correlation Between Regency Centers and CapitaLand Integrated
Can any of the company-specific risk be diversified away by investing in both Regency Centers and CapitaLand Integrated 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 Regency Centers and CapitaLand Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regency Centers and CapitaLand Integrated Commercial, you can compare the effects of market volatilities on Regency Centers and CapitaLand Integrated 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 Regency Centers with a short position of CapitaLand Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regency Centers and CapitaLand Integrated.
Diversification Opportunities for Regency Centers and CapitaLand Integrated
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Regency and CapitaLand is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Regency Centers and CapitaLand Integrated Commerci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Integrated and Regency Centers 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 Regency Centers are associated (or correlated) with CapitaLand Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CapitaLand Integrated has no effect on the direction of Regency Centers i.e., Regency Centers and CapitaLand Integrated go up and down completely randomly.
Pair Corralation between Regency Centers and CapitaLand Integrated
Considering the 90-day investment horizon Regency Centers is expected to generate 2.25 times less return on investment than CapitaLand Integrated. But when comparing it to its historical volatility, Regency Centers is 3.96 times less risky than CapitaLand Integrated. It trades about 0.04 of its potential returns per unit of risk. CapitaLand Integrated Commercial is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 147.00 in CapitaLand Integrated Commercial on September 6, 2024 and sell it today you would earn a total of 0.00 from holding CapitaLand Integrated Commercial or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 82.02% |
Values | Daily Returns |
Regency Centers vs. CapitaLand Integrated Commerci
Performance |
Timeline |
Regency Centers |
CapitaLand Integrated |
Regency Centers and CapitaLand Integrated Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Regency Centers and CapitaLand Integrated
The main advantage of trading using opposite Regency Centers and CapitaLand Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regency Centers position performs unexpectedly, CapitaLand Integrated 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 Integrated will offset losses from the drop in CapitaLand Integrated's long position.Regency Centers vs. Saul Centers | Regency Centers vs. Site Centers Corp | Regency Centers vs. Kite Realty Group | Regency Centers vs. Retail Opportunity Investments |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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