Correlation Between Alstria Office and SINGAPORE AIRLINES
Can any of the company-specific risk be diversified away by investing in both Alstria Office 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 Alstria Office and SINGAPORE AIRLINES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between alstria office REIT AG and SINGAPORE AIRLINES, you can compare the effects of market volatilities on Alstria Office 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 Alstria Office with a short position of SINGAPORE AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alstria Office and SINGAPORE AIRLINES.
Diversification Opportunities for Alstria Office and SINGAPORE AIRLINES
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Alstria and SINGAPORE is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding alstria office REIT AG and SINGAPORE AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE AIRLINES and Alstria Office 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 alstria office REIT AG 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 Alstria Office i.e., Alstria Office and SINGAPORE AIRLINES go up and down completely randomly.
Pair Corralation between Alstria Office and SINGAPORE AIRLINES
Assuming the 90 days horizon alstria office REIT AG is expected to under-perform the SINGAPORE AIRLINES. In addition to that, Alstria Office is 10.84 times more volatile than SINGAPORE AIRLINES. It trades about -0.22 of its total potential returns per unit of risk. SINGAPORE AIRLINES is currently generating about 0.0 per unit of volatility. If you would invest 454.00 in SINGAPORE AIRLINES on October 11, 2024 and sell it today you would earn a total of 0.00 from holding SINGAPORE AIRLINES or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
alstria office REIT AG vs. SINGAPORE AIRLINES
Performance |
| Timeline |
| alstria office REIT |
| SINGAPORE AIRLINES |
Alstria Office and SINGAPORE AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alstria Office and SINGAPORE AIRLINES
The main advantage of trading using opposite Alstria Office and SINGAPORE AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alstria Office 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.| Alstria Office vs. Canadian Utilities Limited | Alstria Office vs. Algonquin Power Utilities | Alstria Office vs. UNITED RENTALS | Alstria Office vs. United Breweries Co |
| SINGAPORE AIRLINES vs. Titan Machinery | SINGAPORE AIRLINES vs. Nufarm Limited | SINGAPORE AIRLINES vs. Endeavour Mining PLC | SINGAPORE AIRLINES vs. WIMFARM SA EO |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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