Correlation Between COREBRIDGE FINANCIAL and Singapore Airlines
Can any of the company-specific risk be diversified away by investing in both COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL and Singapore Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COREBRIDGE FINANCIAL INC and Singapore Airlines Limited, you can compare the effects of market volatilities on COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL with a short position of Singapore Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of COREBRIDGE FINANCIAL and Singapore Airlines.
Diversification Opportunities for COREBRIDGE FINANCIAL and Singapore Airlines
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between COREBRIDGE and Singapore is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding COREBRIDGE FINANCIAL INC and Singapore Airlines Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Airlines and COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL i.e., COREBRIDGE FINANCIAL and Singapore Airlines go up and down completely randomly.
Pair Corralation between COREBRIDGE FINANCIAL and Singapore Airlines
Assuming the 90 days horizon COREBRIDGE FINANCIAL INC is expected to generate 1.78 times more return on investment than Singapore Airlines. However, COREBRIDGE FINANCIAL is 1.78 times more volatile than Singapore Airlines Limited. It trades about 0.29 of its potential returns per unit of risk. Singapore Airlines Limited is currently generating about -0.2 per unit of risk. If you would invest 2,860 in COREBRIDGE FINANCIAL INC on October 30, 2024 and sell it today you would earn a total of 240.00 from holding COREBRIDGE FINANCIAL INC or generate 8.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COREBRIDGE FINANCIAL INC vs. Singapore Airlines Limited
Performance |
| Timeline |
| COREBRIDGE FINANCIAL INC |
| Singapore Airlines |
COREBRIDGE FINANCIAL and Singapore Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COREBRIDGE FINANCIAL and Singapore Airlines
The main advantage of trading using opposite COREBRIDGE FINANCIAL and Singapore Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COREBRIDGE FINANCIAL 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' long position.| COREBRIDGE FINANCIAL vs. Granite Construction | COREBRIDGE FINANCIAL vs. Hanison Construction Holdings | COREBRIDGE FINANCIAL vs. Australian Agricultural | COREBRIDGE FINANCIAL vs. Tower One Wireless |
| Singapore Airlines vs. Nippon Light Metal | Singapore Airlines vs. PARKEN Sport Entertainment | Singapore Airlines vs. CARDINAL HEALTH | Singapore Airlines vs. PURETECH HEALTH PLC |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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