Correlation Between ELL ENVIRONHLDGS and Sembcorp Marine
Can any of the company-specific risk be diversified away by investing in both ELL ENVIRONHLDGS and Sembcorp Marine 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 ELL ENVIRONHLDGS and Sembcorp Marine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ELL ENVIRONHLDGS HD 0001 and Sembcorp Marine, you can compare the effects of market volatilities on ELL ENVIRONHLDGS and Sembcorp Marine 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 ELL ENVIRONHLDGS with a short position of Sembcorp Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of ELL ENVIRONHLDGS and Sembcorp Marine.
Diversification Opportunities for ELL ENVIRONHLDGS and Sembcorp Marine
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ELL and Sembcorp is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ELL ENVIRONHLDGS HD 0001 and Sembcorp Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sembcorp Marine and ELL ENVIRONHLDGS 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 ELL ENVIRONHLDGS HD 0001 are associated (or correlated) with Sembcorp Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sembcorp Marine has no effect on the direction of ELL ENVIRONHLDGS i.e., ELL ENVIRONHLDGS and Sembcorp Marine go up and down completely randomly.
Pair Corralation between ELL ENVIRONHLDGS and Sembcorp Marine
If you would invest 1,804 in Sembcorp Marine on November 5, 2024 and sell it today you would earn a total of 0.00 from holding Sembcorp Marine or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
ELL ENVIRONHLDGS HD 0001 vs. Sembcorp Marine
Performance |
| Timeline |
| ELL ENVIRONHLDGS |
| Sembcorp Marine |
ELL ENVIRONHLDGS and Sembcorp Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ELL ENVIRONHLDGS and Sembcorp Marine
The main advantage of trading using opposite ELL ENVIRONHLDGS and Sembcorp Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ELL ENVIRONHLDGS position performs unexpectedly, Sembcorp Marine 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 Sembcorp Marine will offset losses from the drop in Sembcorp Marine's long position.| ELL ENVIRONHLDGS vs. Waste Management | ELL ENVIRONHLDGS vs. Republic Services | ELL ENVIRONHLDGS vs. Waste Connections | ELL ENVIRONHLDGS vs. Veolia Environnement SA |
| Sembcorp Marine vs. STMICROELECTRONICS | Sembcorp Marine vs. Firan Technology Group | Sembcorp Marine vs. Agilent Technologies | Sembcorp Marine vs. GLG LIFE TECH |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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