Correlation Between Consolidated Communications and Singapore Airlines
Can any of the company-specific risk be diversified away by investing in both Consolidated Communications 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 Consolidated Communications and Singapore Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consolidated Communications Holdings and Singapore Airlines Limited, you can compare the effects of market volatilities on Consolidated Communications 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 Consolidated Communications with a short position of Singapore Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consolidated Communications and Singapore Airlines.
Diversification Opportunities for Consolidated Communications and Singapore Airlines
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Consolidated and Singapore is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Consolidated Communications Ho and Singapore Airlines Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Airlines and Consolidated Communications 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 Consolidated Communications Holdings 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 Consolidated Communications i.e., Consolidated Communications and Singapore Airlines go up and down completely randomly.
Pair Corralation between Consolidated Communications and Singapore Airlines
Assuming the 90 days horizon Consolidated Communications is expected to generate 1.59 times less return on investment than Singapore Airlines. In addition to that, Consolidated Communications is 2.03 times more volatile than Singapore Airlines Limited. It trades about 0.02 of its total potential returns per unit of risk. Singapore Airlines Limited is currently generating about 0.05 per unit of volatility. If you would invest 325.00 in Singapore Airlines Limited on August 26, 2024 and sell it today you would earn a total of 125.00 from holding Singapore Airlines Limited or generate 38.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Consolidated Communications Ho vs. Singapore Airlines Limited
Performance |
| Timeline |
| Consolidated Communications |
| Singapore Airlines |
Consolidated Communications and Singapore Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consolidated Communications and Singapore Airlines
The main advantage of trading using opposite Consolidated Communications and Singapore Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consolidated Communications 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.| Consolidated Communications vs. T Mobile | Consolidated Communications vs. ATT Inc | Consolidated Communications vs. Deutsche Telekom AG | Consolidated Communications vs. Nippon Telegraph and |
| Singapore Airlines vs. Qurate Retail Series | Singapore Airlines vs. Ross Stores | Singapore Airlines vs. National Beverage Corp | Singapore Airlines vs. QURATE RETAIL 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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