Correlation Between International Consolidated and SINGAPORE AIRLINES
Can any of the company-specific risk be diversified away by investing in both International Consolidated 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 International Consolidated and SINGAPORE AIRLINES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Consolidated Airlines and SINGAPORE AIRLINES, you can compare the effects of market volatilities on International Consolidated 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 International Consolidated with a short position of SINGAPORE AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Consolidated and SINGAPORE AIRLINES.
Diversification Opportunities for International Consolidated and SINGAPORE AIRLINES
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between International and SINGAPORE is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding International Consolidated Air and SINGAPORE AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE AIRLINES and International Consolidated 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 International Consolidated Airlines 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 International Consolidated i.e., International Consolidated and SINGAPORE AIRLINES go up and down completely randomly.
Pair Corralation between International Consolidated and SINGAPORE AIRLINES
Assuming the 90 days horizon International Consolidated Airlines is expected to generate 1.63 times more return on investment than SINGAPORE AIRLINES. However, International Consolidated is 1.63 times more volatile than SINGAPORE AIRLINES. It trades about 0.16 of its potential returns per unit of risk. SINGAPORE AIRLINES is currently generating about -0.08 per unit of risk. If you would invest 253.00 in International Consolidated Airlines on August 28, 2024 and sell it today you would earn a total of 41.00 from holding International Consolidated Airlines or generate 16.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Consolidated Air vs. SINGAPORE AIRLINES
Performance |
| Timeline |
| International Consolidated |
| SINGAPORE AIRLINES |
International Consolidated and SINGAPORE AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Consolidated and SINGAPORE AIRLINES
The main advantage of trading using opposite International Consolidated and SINGAPORE AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Consolidated 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's long position.| International Consolidated vs. 24SEVENOFFICE GROUP AB | International Consolidated vs. SLR Investment Corp | International Consolidated vs. The City of | International Consolidated vs. American Airlines Group |
| SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Microsoft |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |