Correlation Between SANOK RUBBER and Singapore Airlines
Can any of the company-specific risk be diversified away by investing in both SANOK RUBBER 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 SANOK RUBBER and Singapore Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SANOK RUBBER ZY and Singapore Airlines Limited, you can compare the effects of market volatilities on SANOK RUBBER 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 SANOK RUBBER with a short position of Singapore Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANOK RUBBER and Singapore Airlines.
Diversification Opportunities for SANOK RUBBER and Singapore Airlines
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SANOK and Singapore is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding SANOK RUBBER ZY and Singapore Airlines Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Airlines and SANOK RUBBER 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 SANOK RUBBER ZY 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 SANOK RUBBER i.e., SANOK RUBBER and Singapore Airlines go up and down completely randomly.
Pair Corralation between SANOK RUBBER and Singapore Airlines
Assuming the 90 days horizon SANOK RUBBER ZY is expected to generate 2.35 times more return on investment than Singapore Airlines. However, SANOK RUBBER is 2.35 times more volatile than Singapore Airlines Limited. It trades about 0.08 of its potential returns per unit of risk. Singapore Airlines Limited is currently generating about 0.04 per unit of risk. If you would invest 339.00 in SANOK RUBBER ZY on September 1, 2024 and sell it today you would earn a total of 106.00 from holding SANOK RUBBER ZY or generate 31.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SANOK RUBBER ZY vs. Singapore Airlines Limited
Performance |
| Timeline |
| SANOK RUBBER ZY |
| Singapore Airlines |
SANOK RUBBER and Singapore Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SANOK RUBBER and Singapore Airlines
The main advantage of trading using opposite SANOK RUBBER and Singapore Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANOK RUBBER 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' long position.| SANOK RUBBER vs. United Utilities Group | SANOK RUBBER vs. DELTA AIR LINES | SANOK RUBBER vs. SEALED AIR | SANOK RUBBER vs. The Hanover Insurance |
| Singapore Airlines vs. Southwest Airlines Co | Singapore Airlines vs. Superior Plus Corp | Singapore Airlines vs. NMI Holdings | Singapore Airlines vs. Origin Agritech |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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