Correlation Between DBS Group and SCIENCE IN
Can any of the company-specific risk be diversified away by investing in both DBS Group and SCIENCE IN 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 DBS Group and SCIENCE IN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DBS Group Holdings and SCIENCE IN SPORT, you can compare the effects of market volatilities on DBS Group and SCIENCE IN 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 DBS Group with a short position of SCIENCE IN. Check out your portfolio center. Please also check ongoing floating volatility patterns of DBS Group and SCIENCE IN.
Diversification Opportunities for DBS Group and SCIENCE IN
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DBS and SCIENCE is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding DBS Group Holdings and SCIENCE IN SPORT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCIENCE IN SPORT and DBS Group 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 DBS Group Holdings are associated (or correlated) with SCIENCE IN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCIENCE IN SPORT has no effect on the direction of DBS Group i.e., DBS Group and SCIENCE IN go up and down completely randomly.
Pair Corralation between DBS Group and SCIENCE IN
Assuming the 90 days trading horizon DBS Group is expected to generate 1.88 times less return on investment than SCIENCE IN. But when comparing it to its historical volatility, DBS Group Holdings is 2.23 times less risky than SCIENCE IN. It trades about 0.16 of its potential returns per unit of risk. SCIENCE IN SPORT is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 16.00 in SCIENCE IN SPORT on September 3, 2024 and sell it today you would earn a total of 14.00 from holding SCIENCE IN SPORT or generate 87.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DBS Group Holdings vs. SCIENCE IN SPORT
Performance |
| Timeline |
| DBS Group Holdings |
| SCIENCE IN SPORT |
DBS Group and SCIENCE IN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DBS Group and SCIENCE IN
The main advantage of trading using opposite DBS Group and SCIENCE IN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DBS Group position performs unexpectedly, SCIENCE IN 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 SCIENCE IN will offset losses from the drop in SCIENCE IN's long position.| DBS Group vs. DFS Furniture PLC | DBS Group vs. GLG LIFE TECH | DBS Group vs. CENTURIA OFFICE REIT | DBS Group vs. Lion Biotechnologies |
| SCIENCE IN vs. Nestl SA | SCIENCE IN vs. Kraft Heinz Co | SCIENCE IN vs. General Mills | SCIENCE IN vs. Kellogg Company |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |