Correlation Between MYFAIR GOLD and Singapore Reinsurance
Can any of the company-specific risk be diversified away by investing in both MYFAIR GOLD and Singapore Reinsurance 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 MYFAIR GOLD and Singapore Reinsurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MYFAIR GOLD P and Singapore Reinsurance, you can compare the effects of market volatilities on MYFAIR GOLD and Singapore Reinsurance 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 MYFAIR GOLD with a short position of Singapore Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of MYFAIR GOLD and Singapore Reinsurance.
Diversification Opportunities for MYFAIR GOLD and Singapore Reinsurance
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between MYFAIR and Singapore is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding MYFAIR GOLD P and Singapore Reinsurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Reinsurance and MYFAIR GOLD 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 MYFAIR GOLD P are associated (or correlated) with Singapore Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Reinsurance has no effect on the direction of MYFAIR GOLD i.e., MYFAIR GOLD and Singapore Reinsurance go up and down completely randomly.
Pair Corralation between MYFAIR GOLD and Singapore Reinsurance
Assuming the 90 days horizon MYFAIR GOLD is expected to generate 5.71 times less return on investment than Singapore Reinsurance. In addition to that, MYFAIR GOLD is 1.45 times more volatile than Singapore Reinsurance. It trades about 0.01 of its total potential returns per unit of risk. Singapore Reinsurance is currently generating about 0.06 per unit of volatility. If you would invest 2,760 in Singapore Reinsurance on September 1, 2024 and sell it today you would earn a total of 720.00 from holding Singapore Reinsurance or generate 26.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MYFAIR GOLD P vs. Singapore Reinsurance
Performance |
| Timeline |
| MYFAIR GOLD P |
| Singapore Reinsurance |
MYFAIR GOLD and Singapore Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MYFAIR GOLD and Singapore Reinsurance
The main advantage of trading using opposite MYFAIR GOLD and Singapore Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MYFAIR GOLD position performs unexpectedly, Singapore Reinsurance 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 Reinsurance will offset losses from the drop in Singapore Reinsurance's long position.| MYFAIR GOLD vs. PLAYTIKA HOLDING DL 01 | MYFAIR GOLD vs. CNVISION MEDIA | MYFAIR GOLD vs. Dave Busters Entertainment | MYFAIR GOLD vs. STORE ELECTRONIC |
| Singapore Reinsurance vs. SIVERS SEMICONDUCTORS AB | Singapore Reinsurance vs. Darden Restaurants | Singapore Reinsurance vs. Reliance Steel Aluminum | Singapore Reinsurance vs. Q2M Managementberatung AG |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Global Correlations Find global opportunities by holding instruments from different markets |