Correlation Between PTT GLBL and Singapore Airlines
Can any of the company-specific risk be diversified away by investing in both PTT GLBL 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 PTT GLBL and Singapore Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT GLBL CHEM NVDR and Singapore Airlines Limited, you can compare the effects of market volatilities on PTT GLBL 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 PTT GLBL with a short position of Singapore Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT GLBL and Singapore Airlines.
Diversification Opportunities for PTT GLBL and Singapore Airlines
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PTT and Singapore is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding PTT GLBL CHEM NVDR and Singapore Airlines Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Airlines and PTT GLBL 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 PTT GLBL CHEM NVDR 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 PTT GLBL i.e., PTT GLBL and Singapore Airlines go up and down completely randomly.
Pair Corralation between PTT GLBL and Singapore Airlines
Assuming the 90 days trading horizon PTT GLBL CHEM NVDR is expected to under-perform the Singapore Airlines. In addition to that, PTT GLBL is 2.31 times more volatile than Singapore Airlines Limited. It trades about -0.04 of its total potential returns per unit of risk. Singapore Airlines Limited is currently generating about 0.09 per unit of volatility. If you would invest 435.00 in Singapore Airlines Limited on September 5, 2024 and sell it today you would earn a total of 9.00 from holding Singapore Airlines Limited or generate 2.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
PTT GLBL CHEM NVDR vs. Singapore Airlines Limited
Performance |
| Timeline |
| PTT GLBL CHEM |
| Singapore Airlines |
PTT GLBL and Singapore Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT GLBL and Singapore Airlines
The main advantage of trading using opposite PTT GLBL and Singapore Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT GLBL 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.| PTT GLBL vs. Singapore Airlines Limited | PTT GLBL vs. Adtalem Global Education | PTT GLBL vs. SPORT LISBOA E | PTT GLBL vs. EMBARK EDUCATION LTD |
| Singapore Airlines vs. Delta Air Lines | Singapore Airlines vs. AIR CHINA LTD | Singapore Airlines vs. RYANAIR HLDGS ADR | Singapore Airlines vs. China Southern Airlines |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |