Correlation Between ARDAGH METAL and SINGAPORE AIRLINES
Can any of the company-specific risk be diversified away by investing in both ARDAGH METAL 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 ARDAGH METAL and SINGAPORE AIRLINES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ARDAGH METAL PACDL 0001 and SINGAPORE AIRLINES, you can compare the effects of market volatilities on ARDAGH METAL 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 ARDAGH METAL with a short position of SINGAPORE AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARDAGH METAL and SINGAPORE AIRLINES.
Diversification Opportunities for ARDAGH METAL and SINGAPORE AIRLINES
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ARDAGH and SINGAPORE is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding ARDAGH METAL PACDL 0001 and SINGAPORE AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE AIRLINES and ARDAGH METAL 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 ARDAGH METAL PACDL 0001 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 ARDAGH METAL i.e., ARDAGH METAL and SINGAPORE AIRLINES go up and down completely randomly.
Pair Corralation between ARDAGH METAL and SINGAPORE AIRLINES
Assuming the 90 days horizon ARDAGH METAL PACDL 0001 is expected to under-perform the SINGAPORE AIRLINES. In addition to that, ARDAGH METAL is 4.8 times more volatile than SINGAPORE AIRLINES. It trades about -0.16 of its total potential returns per unit of risk. SINGAPORE AIRLINES is currently generating about 0.03 per unit of volatility. If you would invest 440.00 in SINGAPORE AIRLINES on October 30, 2024 and sell it today you would earn a total of 3.00 from holding SINGAPORE AIRLINES or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ARDAGH METAL PACDL 0001 vs. SINGAPORE AIRLINES
Performance |
| Timeline |
| ARDAGH METAL PACDL |
| SINGAPORE AIRLINES |
ARDAGH METAL and SINGAPORE AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARDAGH METAL and SINGAPORE AIRLINES
The main advantage of trading using opposite ARDAGH METAL and SINGAPORE AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARDAGH METAL 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.| ARDAGH METAL vs. Globex Mining Enterprises | ARDAGH METAL vs. Constellation Software | ARDAGH METAL vs. Guidewire Software | ARDAGH METAL vs. CARSALESCOM |
| SINGAPORE AIRLINES vs. Taiwan Semiconductor Manufacturing | SINGAPORE AIRLINES vs. PICKN PAY STORES | SINGAPORE AIRLINES vs. ON SEMICONDUCTOR | SINGAPORE AIRLINES vs. United Utilities Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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