Correlation Between COPLAND ROAD and Singapore Reinsurance
Can any of the company-specific risk be diversified away by investing in both COPLAND ROAD 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 COPLAND ROAD and Singapore Reinsurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COPLAND ROAD CAPITAL and Singapore Reinsurance, you can compare the effects of market volatilities on COPLAND ROAD 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 COPLAND ROAD with a short position of Singapore Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of COPLAND ROAD and Singapore Reinsurance.
Diversification Opportunities for COPLAND ROAD and Singapore Reinsurance
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between COPLAND and Singapore is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding COPLAND ROAD CAPITAL and Singapore Reinsurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Reinsurance and COPLAND ROAD 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 COPLAND ROAD CAPITAL 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 COPLAND ROAD i.e., COPLAND ROAD and Singapore Reinsurance go up and down completely randomly.
Pair Corralation between COPLAND ROAD and Singapore Reinsurance
Assuming the 90 days horizon COPLAND ROAD CAPITAL is expected to generate 15.99 times more return on investment than Singapore Reinsurance. However, COPLAND ROAD is 15.99 times more volatile than Singapore Reinsurance. It trades about 0.05 of its potential returns per unit of risk. Singapore Reinsurance is currently generating about 0.02 per unit of risk. If you would invest 15.00 in COPLAND ROAD CAPITAL on August 26, 2024 and sell it today you would earn a total of 3,930 from holding COPLAND ROAD CAPITAL or generate 26200.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COPLAND ROAD CAPITAL vs. Singapore Reinsurance
Performance |
| Timeline |
| COPLAND ROAD CAPITAL |
| Singapore Reinsurance |
COPLAND ROAD and Singapore Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COPLAND ROAD and Singapore Reinsurance
The main advantage of trading using opposite COPLAND ROAD and Singapore Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COPLAND ROAD 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.| COPLAND ROAD vs. VIRGIN WINES UK | COPLAND ROAD vs. InterContinental Hotels Group | COPLAND ROAD vs. Unity Software | COPLAND ROAD vs. ITALIAN WINE BRANDS |
| Singapore Reinsurance vs. COPLAND ROAD CAPITAL | Singapore Reinsurance vs. SOFTBANK P ADR | Singapore Reinsurance vs. PT Bank Maybank | Singapore Reinsurance vs. Texas Roadhouse |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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