Correlation Between SQUIRREL MEDIA and Singapore Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both SQUIRREL MEDIA and Singapore Telecommunicatio 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 SQUIRREL MEDIA and Singapore Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SQUIRREL MEDIA SA and Singapore Telecommunications Limited, you can compare the effects of market volatilities on SQUIRREL MEDIA and Singapore Telecommunicatio 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 SQUIRREL MEDIA with a short position of Singapore Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of SQUIRREL MEDIA and Singapore Telecommunicatio.
Diversification Opportunities for SQUIRREL MEDIA and Singapore Telecommunicatio
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between SQUIRREL and Singapore is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding SQUIRREL MEDIA SA and Singapore Telecommunications L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Telecommunicatio and SQUIRREL MEDIA 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 SQUIRREL MEDIA SA are associated (or correlated) with Singapore Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Telecommunicatio has no effect on the direction of SQUIRREL MEDIA i.e., SQUIRREL MEDIA and Singapore Telecommunicatio go up and down completely randomly.
Pair Corralation between SQUIRREL MEDIA and Singapore Telecommunicatio
Assuming the 90 days horizon SQUIRREL MEDIA SA is expected to generate 1.12 times more return on investment than Singapore Telecommunicatio. However, SQUIRREL MEDIA is 1.12 times more volatile than Singapore Telecommunications Limited. It trades about 0.01 of its potential returns per unit of risk. Singapore Telecommunications Limited is currently generating about 0.0 per unit of risk. If you would invest 138.00 in SQUIRREL MEDIA SA on October 14, 2024 and sell it today you would earn a total of 0.00 from holding SQUIRREL MEDIA SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SQUIRREL MEDIA SA vs. Singapore Telecommunications L
Performance |
| Timeline |
| SQUIRREL MEDIA SA |
| Singapore Telecommunicatio |
SQUIRREL MEDIA and Singapore Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SQUIRREL MEDIA and Singapore Telecommunicatio
The main advantage of trading using opposite SQUIRREL MEDIA and Singapore Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SQUIRREL MEDIA position performs unexpectedly, Singapore Telecommunicatio 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 Telecommunicatio will offset losses from the drop in Singapore Telecommunicatio's long position.| SQUIRREL MEDIA vs. Sterling Construction | SQUIRREL MEDIA vs. ARISTOCRAT LEISURE | SQUIRREL MEDIA vs. Federal Agricultural Mortgage | SQUIRREL MEDIA vs. Granite Construction |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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