Correlation Between EPSILON HEALTHCARE and SINGAPORE AIRLINES
Can any of the company-specific risk be diversified away by investing in both EPSILON HEALTHCARE 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 EPSILON HEALTHCARE and SINGAPORE AIRLINES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EPSILON HEALTHCARE LTD and SINGAPORE AIRLINES, you can compare the effects of market volatilities on EPSILON HEALTHCARE 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 EPSILON HEALTHCARE with a short position of SINGAPORE AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPSILON HEALTHCARE and SINGAPORE AIRLINES.
Diversification Opportunities for EPSILON HEALTHCARE and SINGAPORE AIRLINES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EPSILON and SINGAPORE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EPSILON HEALTHCARE LTD and SINGAPORE AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE AIRLINES and EPSILON HEALTHCARE 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 EPSILON HEALTHCARE LTD 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 EPSILON HEALTHCARE i.e., EPSILON HEALTHCARE and SINGAPORE AIRLINES go up and down completely randomly.
Pair Corralation between EPSILON HEALTHCARE and SINGAPORE AIRLINES
If you would invest 400.00 in SINGAPORE AIRLINES on November 1, 2024 and sell it today you would earn a total of 42.00 from holding SINGAPORE AIRLINES or generate 10.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.56% |
| Values | Daily Returns |
EPSILON HEALTHCARE LTD vs. SINGAPORE AIRLINES
Performance |
| Timeline |
| EPSILON HEALTHCARE LTD |
| SINGAPORE AIRLINES |
EPSILON HEALTHCARE and SINGAPORE AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPSILON HEALTHCARE and SINGAPORE AIRLINES
The main advantage of trading using opposite EPSILON HEALTHCARE and SINGAPORE AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPSILON HEALTHCARE 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.| EPSILON HEALTHCARE vs. Citic Telecom International | EPSILON HEALTHCARE vs. The Boston Beer | EPSILON HEALTHCARE vs. MOLSON RS BEVERAGE | EPSILON HEALTHCARE vs. Telecom Argentina SA |
| SINGAPORE AIRLINES vs. EPSILON HEALTHCARE LTD | SINGAPORE AIRLINES vs. Yuexiu Transport Infrastructure | SINGAPORE AIRLINES vs. Columbia Sportswear | SINGAPORE AIRLINES vs. WESANA HEALTH HOLD |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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