Correlation Between Freenet AG and Singapore Telecommunicatio
Specify exactly 2 symbols:
By analyzing existing cross correlation between freenet AG and Singapore Telecommunications Limited, you can compare the effects of market volatilities on Freenet AG 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 Freenet AG with a short position of Singapore Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freenet AG and Singapore Telecommunicatio.
Diversification Opportunities for Freenet AG and Singapore Telecommunicatio
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Freenet and Singapore is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding freenet AG and Singapore Telecommunications L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Telecommunicatio and Freenet AG 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 freenet AG 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 Freenet AG i.e., Freenet AG and Singapore Telecommunicatio go up and down completely randomly.
Pair Corralation between Freenet AG and Singapore Telecommunicatio
Assuming the 90 days trading horizon freenet AG is expected to generate 0.45 times more return on investment than Singapore Telecommunicatio. However, freenet AG is 2.23 times less risky than Singapore Telecommunicatio. It trades about 0.08 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 2,808 in freenet AG on September 14, 2024 and sell it today you would earn a total of 42.00 from holding freenet AG or generate 1.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
freenet AG vs. Singapore Telecommunications L
Performance |
| Timeline |
| freenet AG |
| Singapore Telecommunicatio |
Freenet AG and Singapore Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freenet AG and Singapore Telecommunicatio
The main advantage of trading using opposite Freenet AG and Singapore Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freenet AG 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.| Freenet AG vs. Singapore Telecommunications Limited | Freenet AG vs. Ribbon Communications | Freenet AG vs. Universal Display | Freenet AG vs. Cogent Communications Holdings |
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.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |