Correlation Between Fuji Media and Singapore Airlines
Can any of the company-specific risk be diversified away by investing in both Fuji Media 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 Fuji Media and Singapore Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fuji Media Holdings and Singapore Airlines Limited, you can compare the effects of market volatilities on Fuji Media 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 Fuji Media with a short position of Singapore Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuji Media and Singapore Airlines.
Diversification Opportunities for Fuji Media and Singapore Airlines
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fuji and Singapore is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Fuji Media Holdings and Singapore Airlines Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Airlines and Fuji Media 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 Fuji Media Holdings 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 Fuji Media i.e., Fuji Media and Singapore Airlines go up and down completely randomly.
Pair Corralation between Fuji Media and Singapore Airlines
Assuming the 90 days trading horizon Fuji Media Holdings is expected to under-perform the Singapore Airlines. In addition to that, Fuji Media is 2.43 times more volatile than Singapore Airlines Limited. It trades about -0.16 of its total potential returns per unit of risk. Singapore Airlines Limited is currently generating about -0.03 per unit of volatility. If you would invest 445.00 in Singapore Airlines Limited on October 21, 2024 and sell it today you would lose (3.00) from holding Singapore Airlines Limited or give up 0.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuji Media Holdings vs. Singapore Airlines Limited
Performance |
| Timeline |
| Fuji Media Holdings |
| Singapore Airlines |
Fuji Media and Singapore Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuji Media and Singapore Airlines
The main advantage of trading using opposite Fuji Media and Singapore Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuji Media 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.| Fuji Media vs. Gruppo Mutuionline SpA | Fuji Media vs. Salesforce | Fuji Media vs. Lamar Advertising | Fuji Media vs. X FAB Silicon Foundries |
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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.
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