Correlation Between PLAYWAY SA and SINGAPORE AIRLINES
Can any of the company-specific risk be diversified away by investing in both PLAYWAY SA 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 PLAYWAY SA and SINGAPORE AIRLINES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLAYWAY SA ZY 10 and SINGAPORE AIRLINES, you can compare the effects of market volatilities on PLAYWAY SA 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 PLAYWAY SA with a short position of SINGAPORE AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYWAY SA and SINGAPORE AIRLINES.
Diversification Opportunities for PLAYWAY SA and SINGAPORE AIRLINES
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PLAYWAY and SINGAPORE is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding PLAYWAY SA ZY 10 and SINGAPORE AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE AIRLINES and PLAYWAY SA 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 PLAYWAY SA ZY 10 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 PLAYWAY SA i.e., PLAYWAY SA and SINGAPORE AIRLINES go up and down completely randomly.
Pair Corralation between PLAYWAY SA and SINGAPORE AIRLINES
Assuming the 90 days horizon PLAYWAY SA ZY 10 is expected to generate 2.96 times more return on investment than SINGAPORE AIRLINES. However, PLAYWAY SA is 2.96 times more volatile than SINGAPORE AIRLINES. It trades about 0.09 of its potential returns per unit of risk. SINGAPORE AIRLINES is currently generating about -0.05 per unit of risk. If you would invest 6,400 in PLAYWAY SA ZY 10 on October 14, 2024 and sell it today you would earn a total of 200.00 from holding PLAYWAY SA ZY 10 or generate 3.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYWAY SA ZY 10 vs. SINGAPORE AIRLINES
Performance |
| Timeline |
| PLAYWAY SA ZY |
| SINGAPORE AIRLINES |
PLAYWAY SA and SINGAPORE AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYWAY SA and SINGAPORE AIRLINES
The main advantage of trading using opposite PLAYWAY SA and SINGAPORE AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYWAY SA 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's long position.| PLAYWAY SA vs. Vulcan Materials | PLAYWAY SA vs. CARDINAL HEALTH | PLAYWAY SA vs. Materialise NV | PLAYWAY SA vs. VULCAN MATERIALS |
| SINGAPORE AIRLINES vs. Playa Hotels Resorts | SINGAPORE AIRLINES vs. PLAYWAY SA ZY 10 | SINGAPORE AIRLINES vs. China BlueChemical | SINGAPORE AIRLINES vs. Playtech plc |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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