Correlation Between Brockhaus Capital and SINGAPORE AIRLINES
Can any of the company-specific risk be diversified away by investing in both Brockhaus Capital 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 Brockhaus Capital and SINGAPORE AIRLINES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brockhaus Capital Management and SINGAPORE AIRLINES, you can compare the effects of market volatilities on Brockhaus Capital 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 Brockhaus Capital with a short position of SINGAPORE AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brockhaus Capital and SINGAPORE AIRLINES.
Diversification Opportunities for Brockhaus Capital and SINGAPORE AIRLINES
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Brockhaus and SINGAPORE is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Brockhaus Capital Management and SINGAPORE AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE AIRLINES and Brockhaus Capital 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 Brockhaus Capital Management 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 Brockhaus Capital i.e., Brockhaus Capital and SINGAPORE AIRLINES go up and down completely randomly.
Pair Corralation between Brockhaus Capital and SINGAPORE AIRLINES
Assuming the 90 days trading horizon Brockhaus Capital Management is expected to generate 4.59 times more return on investment than SINGAPORE AIRLINES. However, Brockhaus Capital is 4.59 times more volatile than SINGAPORE AIRLINES. It trades about 0.06 of its potential returns per unit of risk. SINGAPORE AIRLINES is currently generating about 0.2 per unit of risk. If you would invest 2,300 in Brockhaus Capital Management on October 7, 2024 and sell it today you would earn a total of 50.00 from holding Brockhaus Capital Management or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brockhaus Capital Management vs. SINGAPORE AIRLINES
Performance |
| Timeline |
| Brockhaus Capital |
| SINGAPORE AIRLINES |
Brockhaus Capital and SINGAPORE AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brockhaus Capital and SINGAPORE AIRLINES
The main advantage of trading using opposite Brockhaus Capital and SINGAPORE AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brockhaus Capital 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.| Brockhaus Capital vs. Ameriprise Financial | Brockhaus Capital vs. Ares Management Corp | Brockhaus Capital vs. Superior Plus Corp | Brockhaus Capital vs. NMI Holdings |
| SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Apple Inc |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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