Correlation Between TOWNSQUARE MEDIA and Singapore Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both TOWNSQUARE 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 TOWNSQUARE 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 TOWNSQUARE MEDIA INC and Singapore Telecommunications Limited, you can compare the effects of market volatilities on TOWNSQUARE 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 TOWNSQUARE MEDIA with a short position of Singapore Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOWNSQUARE MEDIA and Singapore Telecommunicatio.
Diversification Opportunities for TOWNSQUARE MEDIA and Singapore Telecommunicatio
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between TOWNSQUARE and Singapore is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding TOWNSQUARE MEDIA INC and Singapore Telecommunications L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Telecommunicatio and TOWNSQUARE 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 TOWNSQUARE MEDIA INC 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 TOWNSQUARE MEDIA i.e., TOWNSQUARE MEDIA and Singapore Telecommunicatio go up and down completely randomly.
Pair Corralation between TOWNSQUARE MEDIA and Singapore Telecommunicatio
Assuming the 90 days trading horizon TOWNSQUARE MEDIA INC is expected to under-perform the Singapore Telecommunicatio. In addition to that, TOWNSQUARE MEDIA is 2.0 times more volatile than Singapore Telecommunications Limited. It trades about -0.19 of its total potential returns per unit of risk. Singapore Telecommunications Limited is currently generating about 0.1 per unit of volatility. If you would invest 219.00 in Singapore Telecommunications Limited on October 16, 2024 and sell it today you would earn a total of 5.00 from holding Singapore Telecommunications Limited or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
TOWNSQUARE MEDIA INC vs. Singapore Telecommunications L
Performance |
| Timeline |
| TOWNSQUARE MEDIA INC |
| Singapore Telecommunicatio |
TOWNSQUARE MEDIA and Singapore Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOWNSQUARE MEDIA and Singapore Telecommunicatio
The main advantage of trading using opposite TOWNSQUARE MEDIA and Singapore Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOWNSQUARE 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.| TOWNSQUARE MEDIA vs. Yuexiu Transport Infrastructure | TOWNSQUARE MEDIA vs. Inspire Medical Systems | TOWNSQUARE MEDIA vs. AEON METALS LTD | TOWNSQUARE MEDIA vs. ADRIATIC METALS LS 013355 |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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