Correlation Between PT Global and SINGAPORE AIRLINES
Can any of the company-specific risk be diversified away by investing in both PT Global and SINGAPORE AIRLINES 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 PT Global and SINGAPORE AIRLINES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Global Mediacom and SINGAPORE AIRLINES, you can compare the effects of market volatilities on PT Global and SINGAPORE AIRLINES 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 PT Global with a short position of SINGAPORE AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Global and SINGAPORE AIRLINES.
Diversification Opportunities for PT Global and SINGAPORE AIRLINES
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between 06L and SINGAPORE is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding PT Global Mediacom and SINGAPORE AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE AIRLINES and PT Global 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 PT Global Mediacom are associated (or correlated) with SINGAPORE AIRLINES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINGAPORE AIRLINES has no effect on the direction of PT Global i.e., PT Global and SINGAPORE AIRLINES go up and down completely randomly.
Pair Corralation between PT Global and SINGAPORE AIRLINES
If you would invest 440.00 in SINGAPORE AIRLINES on August 29, 2024 and sell it today you would earn a total of 2.00 from holding SINGAPORE AIRLINES or generate 0.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Global Mediacom vs. SINGAPORE AIRLINES
Performance |
| Timeline |
| PT Global Mediacom |
| SINGAPORE AIRLINES |
PT Global and SINGAPORE AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Global and SINGAPORE AIRLINES
The main advantage of trading using opposite PT Global and SINGAPORE AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Global position performs unexpectedly, SINGAPORE AIRLINES 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 SINGAPORE AIRLINES will offset losses from the drop in SINGAPORE AIRLINES's long position.| PT Global vs. Highlight Communications AG | PT Global vs. INTERSHOP Communications Aktiengesellschaft | PT Global vs. RETAIL FOOD GROUP | PT Global vs. MTI WIRELESS EDGE |
| SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Superior Plus Corp | SINGAPORE AIRLINES vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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