Correlation Between XLMedia PLC and Singapore ReinsuranceLimit
Can any of the company-specific risk be diversified away by investing in both XLMedia PLC and Singapore ReinsuranceLimit 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 XLMedia PLC and Singapore ReinsuranceLimit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XLMedia PLC and Singapore Reinsurance, you can compare the effects of market volatilities on XLMedia PLC and Singapore ReinsuranceLimit 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 XLMedia PLC with a short position of Singapore ReinsuranceLimit. Check out your portfolio center. Please also check ongoing floating volatility patterns of XLMedia PLC and Singapore ReinsuranceLimit.
Diversification Opportunities for XLMedia PLC and Singapore ReinsuranceLimit
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between XLMedia and Singapore is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding XLMedia PLC and Singapore Reinsurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore ReinsuranceLimit and XLMedia PLC 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 XLMedia PLC are associated (or correlated) with Singapore ReinsuranceLimit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore ReinsuranceLimit has no effect on the direction of XLMedia PLC i.e., XLMedia PLC and Singapore ReinsuranceLimit go up and down completely randomly.
Pair Corralation between XLMedia PLC and Singapore ReinsuranceLimit
If you would invest 3,140 in Singapore Reinsurance on September 4, 2024 and sell it today you would earn a total of 420.00 from holding Singapore Reinsurance or generate 13.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
XLMedia PLC vs. Singapore Reinsurance
Performance |
| Timeline |
| XLMedia PLC |
| Singapore ReinsuranceLimit |
XLMedia PLC and Singapore ReinsuranceLimit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XLMedia PLC and Singapore ReinsuranceLimit
The main advantage of trading using opposite XLMedia PLC and Singapore ReinsuranceLimit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XLMedia PLC position performs unexpectedly, Singapore ReinsuranceLimit 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 ReinsuranceLimit will offset losses from the drop in Singapore ReinsuranceLimit's long position.| XLMedia PLC vs. Alphabet Class A | XLMedia PLC vs. Meta Platforms | XLMedia PLC vs. Meta Platforms | XLMedia PLC vs. Tencent Holdings |
| Singapore ReinsuranceLimit vs. TOTAL GABON | Singapore ReinsuranceLimit vs. Walgreens Boots Alliance | Singapore ReinsuranceLimit vs. Peak Resources Limited |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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