Correlation Between Singtex Industrial and Service Quality
Can any of the company-specific risk be diversified away by investing in both Singtex Industrial and Service Quality 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 Singtex Industrial and Service Quality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singtex Industrial Co and Service Quality Technology, you can compare the effects of market volatilities on Singtex Industrial and Service Quality 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 Singtex Industrial with a short position of Service Quality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singtex Industrial and Service Quality.
Diversification Opportunities for Singtex Industrial and Service Quality
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Singtex and Service is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Singtex Industrial Co and Service Quality Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Service Quality Tech and Singtex Industrial 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 Singtex Industrial Co are associated (or correlated) with Service Quality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Service Quality Tech has no effect on the direction of Singtex Industrial i.e., Singtex Industrial and Service Quality go up and down completely randomly.
Pair Corralation between Singtex Industrial and Service Quality
Assuming the 90 days trading horizon Singtex Industrial Co is expected to generate 0.25 times more return on investment than Service Quality. However, Singtex Industrial Co is 4.07 times less risky than Service Quality. It trades about -0.21 of its potential returns per unit of risk. Service Quality Technology is currently generating about -0.26 per unit of risk. If you would invest 2,865 in Singtex Industrial Co on September 12, 2024 and sell it today you would lose (90.00) from holding Singtex Industrial Co or give up 3.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singtex Industrial Co vs. Service Quality Technology
Performance |
| Timeline |
| Singtex Industrial |
| Service Quality Tech |
Singtex Industrial and Service Quality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singtex Industrial and Service Quality
The main advantage of trading using opposite Singtex Industrial and Service Quality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singtex Industrial position performs unexpectedly, Service Quality 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 Service Quality will offset losses from the drop in Service Quality's long position.| Singtex Industrial vs. Eclat Textile Co | Singtex Industrial vs. Ruentex Industries | Singtex Industrial vs. Shinkong Synthetic Fiber | Singtex Industrial vs. Taiwan Paiho |
| Service Quality vs. Singtex Industrial Co | Service Quality vs. General Plastic Industrial | Service Quality vs. ALFORMER Industrial Co | Service Quality vs. Shuang Bang Industrial |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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