Correlation Between Conrad Industries and Singapore Technologies
Can any of the company-specific risk be diversified away by investing in both Conrad Industries and Singapore Technologies 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 Conrad Industries and Singapore Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Conrad Industries and Singapore Technologies Engineering, you can compare the effects of market volatilities on Conrad Industries and Singapore Technologies 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 Conrad Industries with a short position of Singapore Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Conrad Industries and Singapore Technologies.
Diversification Opportunities for Conrad Industries and Singapore Technologies
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Conrad and Singapore is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Conrad Industries and Singapore Technologies Enginee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Technologies and Conrad Industries 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 Conrad Industries are associated (or correlated) with Singapore Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Technologies has no effect on the direction of Conrad Industries i.e., Conrad Industries and Singapore Technologies go up and down completely randomly.
Pair Corralation between Conrad Industries and Singapore Technologies
If you would invest 324.00 in Singapore Technologies Engineering on September 1, 2024 and sell it today you would earn a total of 7.00 from holding Singapore Technologies Engineering or generate 2.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Conrad Industries vs. Singapore Technologies Enginee
Performance |
| Timeline |
| Conrad Industries |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Singapore Technologies |
Conrad Industries and Singapore Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Conrad Industries and Singapore Technologies
The main advantage of trading using opposite Conrad Industries and Singapore Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Conrad Industries position performs unexpectedly, Singapore Technologies 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 Technologies will offset losses from the drop in Singapore Technologies' long position.| Conrad Industries vs. Thales SA ADR | Conrad Industries vs. MTU Aero Engines | Conrad Industries vs. Safran SA | Conrad Industries vs. Leonardo SpA ADR |
| Singapore Technologies vs. Firan Technology Group | Singapore Technologies vs. 808 Renewable Energy | Singapore Technologies vs. Park Electrochemical | Singapore Technologies vs. Innovative Solutions and |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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