Correlation Between Air Lease and Singapore Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both Air Lease 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 Air Lease and Singapore Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and Singapore Telecommunications Limited, you can compare the effects of market volatilities on Air Lease 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 Air Lease with a short position of Singapore Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and Singapore Telecommunicatio.
Diversification Opportunities for Air Lease and Singapore Telecommunicatio
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Air and Singapore is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and Singapore Telecommunications L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Telecommunicatio and Air Lease 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 Air Lease 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 Air Lease i.e., Air Lease and Singapore Telecommunicatio go up and down completely randomly.
Pair Corralation between Air Lease and Singapore Telecommunicatio
Assuming the 90 days trading horizon Air Lease is expected to generate 1.43 times less return on investment than Singapore Telecommunicatio. In addition to that, Air Lease is 1.08 times more volatile than Singapore Telecommunications Limited. It trades about 0.04 of its total potential returns per unit of risk. Singapore Telecommunications Limited is currently generating about 0.06 per unit of volatility. If you would invest 155.00 in Singapore Telecommunications Limited on September 2, 2024 and sell it today you would earn a total of 65.00 from holding Singapore Telecommunications Limited or generate 41.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Lease vs. Singapore Telecommunications L
Performance |
| Timeline |
| Air Lease |
| Singapore Telecommunicatio |
Air Lease and Singapore Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and Singapore Telecommunicatio
The main advantage of trading using opposite Air Lease and Singapore Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease 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.| Air Lease vs. United Rentals | Air Lease vs. Superior Plus Corp | Air Lease vs. NMI Holdings | Air Lease vs. Origin Agritech |
| Singapore Telecommunicatio vs. LGI Homes | Singapore Telecommunicatio vs. DATAGROUP SE | Singapore Telecommunicatio vs. Science Applications International | Singapore Telecommunicatio vs. HomeToGo SE |
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.
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