Correlation Between PREMIER FOODS and Singapore Reinsurance
Can any of the company-specific risk be diversified away by investing in both PREMIER FOODS and Singapore Reinsurance 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 PREMIER FOODS and Singapore Reinsurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PREMIER FOODS and Singapore Reinsurance, you can compare the effects of market volatilities on PREMIER FOODS and Singapore Reinsurance 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 PREMIER FOODS with a short position of Singapore Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of PREMIER FOODS and Singapore Reinsurance.
Diversification Opportunities for PREMIER FOODS and Singapore Reinsurance
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PREMIER and Singapore is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding PREMIER FOODS and Singapore Reinsurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Reinsurance and PREMIER FOODS 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 PREMIER FOODS are associated (or correlated) with Singapore Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Reinsurance has no effect on the direction of PREMIER FOODS i.e., PREMIER FOODS and Singapore Reinsurance go up and down completely randomly.
Pair Corralation between PREMIER FOODS and Singapore Reinsurance
Assuming the 90 days trading horizon PREMIER FOODS is expected to generate 0.3 times more return on investment than Singapore Reinsurance. However, PREMIER FOODS is 3.33 times less risky than Singapore Reinsurance. It trades about -0.29 of its potential returns per unit of risk. Singapore Reinsurance is currently generating about -0.28 per unit of risk. If you would invest 232.00 in PREMIER FOODS on December 8, 2024 and sell it today you would lose (16.00) from holding PREMIER FOODS or give up 6.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PREMIER FOODS vs. Singapore Reinsurance
Performance |
| Timeline |
| PREMIER FOODS |
| Singapore Reinsurance |
PREMIER FOODS and Singapore Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PREMIER FOODS and Singapore Reinsurance
The main advantage of trading using opposite PREMIER FOODS and Singapore Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PREMIER FOODS position performs unexpectedly, Singapore Reinsurance 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 Reinsurance will offset losses from the drop in Singapore Reinsurance's long position.| PREMIER FOODS vs. Apple Inc | ||
| PREMIER FOODS vs. Apple Inc | ||
| PREMIER FOODS vs. Apple Inc | ||
| PREMIER FOODS vs. Apple Inc |
| Singapore Reinsurance vs. Aya Gold Silver | ||
| Singapore Reinsurance vs. LPKF Laser Electronics | ||
| Singapore Reinsurance vs. GALENA MINING LTD | ||
| Singapore Reinsurance vs. GOLDQUEST MINING |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |