Correlation Between CRYOLIFE and Singapore Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both CRYOLIFE and Singapore Telecommunicatio 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 CRYOLIFE and Singapore Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CRYOLIFE and Singapore Telecommunications Limited, you can compare the effects of market volatilities on CRYOLIFE and Singapore Telecommunicatio 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 CRYOLIFE with a short position of Singapore Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of CRYOLIFE and Singapore Telecommunicatio.
Diversification Opportunities for CRYOLIFE and Singapore Telecommunicatio
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CRYOLIFE and Singapore is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding CRYOLIFE and Singapore Telecommunications L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Telecommunicatio and CRYOLIFE 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 CRYOLIFE are associated (or correlated) with Singapore Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Telecommunicatio has no effect on the direction of CRYOLIFE i.e., CRYOLIFE and Singapore Telecommunicatio go up and down completely randomly.
Pair Corralation between CRYOLIFE and Singapore Telecommunicatio
Assuming the 90 days trading horizon CRYOLIFE is expected to generate 0.68 times more return on investment than Singapore Telecommunicatio. However, CRYOLIFE is 1.47 times less risky than Singapore Telecommunicatio. It trades about 0.28 of its potential returns per unit of risk. Singapore Telecommunications Limited is currently generating about -0.01 per unit of risk. If you would invest 2,590 in CRYOLIFE on September 14, 2024 and sell it today you would earn a total of 230.00 from holding CRYOLIFE or generate 8.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CRYOLIFE vs. Singapore Telecommunications L
Performance |
| Timeline |
| CRYOLIFE |
| Singapore Telecommunicatio |
CRYOLIFE and Singapore Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CRYOLIFE and Singapore Telecommunicatio
The main advantage of trading using opposite CRYOLIFE and Singapore Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CRYOLIFE position performs unexpectedly, Singapore Telecommunicatio 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 Telecommunicatio will offset losses from the drop in Singapore Telecommunicatio's long position.| CRYOLIFE vs. Singapore Telecommunications Limited | CRYOLIFE vs. Consolidated Communications Holdings | CRYOLIFE vs. Tower One Wireless | CRYOLIFE vs. Charter Communications |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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