Correlation Between ALGOMA STEEL and Singapore Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both ALGOMA STEEL and Singapore Telecommunicatio 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 ALGOMA STEEL and Singapore Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ALGOMA STEEL GROUP and Singapore Telecommunications Limited, you can compare the effects of market volatilities on ALGOMA STEEL and Singapore Telecommunicatio 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 ALGOMA STEEL with a short position of Singapore Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALGOMA STEEL and Singapore Telecommunicatio.
Diversification Opportunities for ALGOMA STEEL and Singapore Telecommunicatio
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between ALGOMA and Singapore is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding ALGOMA STEEL GROUP and Singapore Telecommunications L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Telecommunicatio and ALGOMA STEEL 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 ALGOMA STEEL GROUP are associated (or correlated) with Singapore Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Telecommunicatio has no effect on the direction of ALGOMA STEEL i.e., ALGOMA STEEL and Singapore Telecommunicatio go up and down completely randomly.
Pair Corralation between ALGOMA STEEL and Singapore Telecommunicatio
Assuming the 90 days horizon ALGOMA STEEL GROUP is expected to under-perform the Singapore Telecommunicatio. In addition to that, ALGOMA STEEL is 2.27 times more volatile than Singapore Telecommunications Limited. It trades about -0.19 of its total potential returns per unit of risk. Singapore Telecommunications Limited is currently generating about 0.08 per unit of volatility. If you would invest 216.00 in Singapore Telecommunications Limited on October 20, 2024 and sell it today you would earn a total of 4.00 from holding Singapore Telecommunications Limited or generate 1.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
ALGOMA STEEL GROUP vs. Singapore Telecommunications L
Performance |
Timeline |
ALGOMA STEEL GROUP |
Singapore Telecommunicatio |
ALGOMA STEEL and Singapore Telecommunicatio Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ALGOMA STEEL and Singapore Telecommunicatio
The main advantage of trading using opposite ALGOMA STEEL and Singapore Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALGOMA STEEL position performs unexpectedly, Singapore Telecommunicatio 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 Telecommunicatio will offset losses from the drop in Singapore Telecommunicatio's long position.ALGOMA STEEL vs. United Rentals | ALGOMA STEEL vs. ALBIS LEASING AG | ALGOMA STEEL vs. PennantPark Investment | ALGOMA STEEL vs. GRENKELEASING Dusseldorf |
Singapore Telecommunicatio vs. Melco Resorts Entertainment | Singapore Telecommunicatio vs. TYSON FOODS A | Singapore Telecommunicatio vs. ZINC MEDIA GR | Singapore Telecommunicatio vs. LINMON MEDIA LTD |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Transaction History View history of all your transactions and understand their impact on performance | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Stocks Directory Find actively traded stocks across global markets |