Correlation Between Chuangs China and Singapore Airlines
Can any of the company-specific risk be diversified away by investing in both Chuangs China 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 Chuangs China and Singapore Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chuangs China Investments and Singapore Airlines Limited, you can compare the effects of market volatilities on Chuangs China 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 Chuangs China with a short position of Singapore Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chuangs China and Singapore Airlines.
Diversification Opportunities for Chuangs China and Singapore Airlines
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Chuangs and Singapore is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Chuangs China Investments and Singapore Airlines Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Airlines and Chuangs China 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 Chuangs China Investments 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 Chuangs China i.e., Chuangs China and Singapore Airlines go up and down completely randomly.
Pair Corralation between Chuangs China and Singapore Airlines
If you would invest 441.00 in Singapore Airlines Limited on September 20, 2024 and sell it today you would earn a total of 5.00 from holding Singapore Airlines Limited or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chuangs China Investments vs. Singapore Airlines Limited
Performance |
| Timeline |
| Chuangs China Investments |
| Singapore Airlines |
Chuangs China and Singapore Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chuangs China and Singapore Airlines
The main advantage of trading using opposite Chuangs China and Singapore Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chuangs China 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.| Chuangs China vs. Superior Plus Corp | Chuangs China vs. SIVERS SEMICONDUCTORS AB | Chuangs China vs. Reliance Steel Aluminum | Chuangs China vs. CHINA HUARONG ENERHD 50 |
| Singapore Airlines vs. RYANAIR HLDGS ADR | Singapore Airlines vs. Superior Plus Corp | Singapore Airlines vs. SIVERS SEMICONDUCTORS AB | Singapore Airlines vs. Norsk Hydro ASA |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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