Correlation Between BOS BETTER and Singapore Airlines
Can any of the company-specific risk be diversified away by investing in both BOS BETTER 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 BOS BETTER and Singapore Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BOS BETTER ONLINE and Singapore Airlines Limited, you can compare the effects of market volatilities on BOS BETTER 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 BOS BETTER with a short position of Singapore Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS BETTER and Singapore Airlines.
Diversification Opportunities for BOS BETTER and Singapore Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BOS and Singapore is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BOS BETTER ONLINE and Singapore Airlines Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Airlines and BOS BETTER 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 BOS BETTER ONLINE 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 BOS BETTER i.e., BOS BETTER and Singapore Airlines go up and down completely randomly.
Pair Corralation between BOS BETTER and Singapore Airlines
If you would invest 236.00 in BOS BETTER ONLINE on October 11, 2024 and sell it today you would earn a total of 0.00 from holding BOS BETTER ONLINE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
BOS BETTER ONLINE vs. Singapore Airlines Limited
Performance |
| Timeline |
| BOS BETTER ONLINE |
| Singapore Airlines |
BOS BETTER and Singapore Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS BETTER and Singapore Airlines
The main advantage of trading using opposite BOS BETTER and Singapore Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS BETTER 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.| BOS BETTER vs. Insurance Australia Group | BOS BETTER vs. Japan Post Insurance | BOS BETTER vs. ZURICH INSURANCE GROUP | BOS BETTER vs. HANOVER INSURANCE |
| Singapore Airlines vs. JLF INVESTMENT | Singapore Airlines vs. Apollo Investment Corp | Singapore Airlines vs. SLR Investment Corp | Singapore Airlines vs. WisdomTree Investments |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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