Correlation Between Genting Singapore and Dana
Can any of the company-specific risk be diversified away by investing in both Genting Singapore and Dana 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 Genting Singapore and Dana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genting Singapore PLC and Dana Inc, you can compare the effects of market volatilities on Genting Singapore and Dana 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 Genting Singapore with a short position of Dana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genting Singapore and Dana.
Diversification Opportunities for Genting Singapore and Dana
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Genting and Dana is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Genting Singapore PLC and Dana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Inc and Genting Singapore 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 Genting Singapore PLC are associated (or correlated) with Dana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Inc has no effect on the direction of Genting Singapore i.e., Genting Singapore and Dana go up and down completely randomly.
Pair Corralation between Genting Singapore and Dana
Assuming the 90 days horizon Genting Singapore PLC is expected to under-perform the Dana. In addition to that, Genting Singapore is 1.16 times more volatile than Dana Inc. It trades about -0.06 of its total potential returns per unit of risk. Dana Inc is currently generating about 0.44 per unit of volatility. If you would invest 763.00 in Dana Inc on September 3, 2024 and sell it today you would earn a total of 237.00 from holding Dana Inc or generate 31.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genting Singapore PLC vs. Dana Inc
Performance |
| Timeline |
| Genting Singapore PLC |
| Dana Inc |
Genting Singapore and Dana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genting Singapore and Dana
The main advantage of trading using opposite Genting Singapore and Dana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genting Singapore position performs unexpectedly, Dana 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 Dana will offset losses from the drop in Dana's long position.| Genting Singapore vs. Westinghouse Air Brake | Genting Singapore vs. Senmiao Technology | Genting Singapore vs. Tootsie Roll Industries | Genting Singapore vs. Mayfair Gold Corp |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |