Correlation Between Apple and SINGAPORE AIRLINES
Can any of the company-specific risk be diversified away by investing in both Apple 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 Apple and SINGAPORE AIRLINES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and SINGAPORE AIRLINES, you can compare the effects of market volatilities on Apple 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 Apple with a short position of SINGAPORE AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and SINGAPORE AIRLINES.
Diversification Opportunities for Apple and SINGAPORE AIRLINES
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Apple and SINGAPORE is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and SINGAPORE AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE AIRLINES and Apple 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 Apple Inc 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 Apple i.e., Apple and SINGAPORE AIRLINES go up and down completely randomly.
Pair Corralation between Apple and SINGAPORE AIRLINES
Assuming the 90 days trading horizon Apple Inc is expected to generate 1.15 times more return on investment than SINGAPORE AIRLINES. However, Apple is 1.15 times more volatile than SINGAPORE AIRLINES. It trades about 0.14 of its potential returns per unit of risk. SINGAPORE AIRLINES is currently generating about 0.02 per unit of risk. If you would invest 21,489 in Apple Inc on August 29, 2024 and sell it today you would earn a total of 921.00 from holding Apple Inc or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. SINGAPORE AIRLINES
Performance |
| Timeline |
| Apple Inc |
| SINGAPORE AIRLINES |
Apple and SINGAPORE AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and SINGAPORE AIRLINES
The main advantage of trading using opposite Apple and SINGAPORE AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple 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.| Apple vs. Cellnex Telecom SA | Apple vs. Spirent Communications plc | Apple vs. Ribbon Communications | Apple vs. Perseus Mining Limited |
| SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Superior Plus Corp | SINGAPORE AIRLINES vs. SIVERS SEMICONDUCTORS AB |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |