Correlation Between RETAIL FOOD and Singapore Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both RETAIL FOOD and Singapore Telecommunicatio 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 RETAIL FOOD and Singapore Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RETAIL FOOD GROUP and Singapore Telecommunications Limited, you can compare the effects of market volatilities on RETAIL FOOD and Singapore Telecommunicatio 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 RETAIL FOOD with a short position of Singapore Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of RETAIL FOOD and Singapore Telecommunicatio.
Diversification Opportunities for RETAIL FOOD and Singapore Telecommunicatio
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between RETAIL and Singapore is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding RETAIL FOOD GROUP and Singapore Telecommunications L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Telecommunicatio and RETAIL FOOD 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 RETAIL FOOD GROUP are associated (or correlated) with Singapore Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Telecommunicatio has no effect on the direction of RETAIL FOOD i.e., RETAIL FOOD and Singapore Telecommunicatio go up and down completely randomly.
Pair Corralation between RETAIL FOOD and Singapore Telecommunicatio
Assuming the 90 days trading horizon RETAIL FOOD GROUP is expected to under-perform the Singapore Telecommunicatio. But the stock apears to be less risky and, when comparing its historical volatility, RETAIL FOOD GROUP is 1.61 times less risky than Singapore Telecommunicatio. The stock trades about -0.31 of its potential returns per unit of risk. The Singapore Telecommunications Limited is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 216.00 in Singapore Telecommunications Limited on September 22, 2024 and sell it today you would earn a total of 0.00 from holding Singapore Telecommunications Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RETAIL FOOD GROUP vs. Singapore Telecommunications L
Performance |
| Timeline |
| RETAIL FOOD GROUP |
| Singapore Telecommunicatio |
RETAIL FOOD and Singapore Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RETAIL FOOD and Singapore Telecommunicatio
The main advantage of trading using opposite RETAIL FOOD and Singapore Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RETAIL FOOD position performs unexpectedly, Singapore Telecommunicatio 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 Telecommunicatio will offset losses from the drop in Singapore Telecommunicatio's long position.| RETAIL FOOD vs. CREDIT AGRICOLE | RETAIL FOOD vs. Aozora Bank | RETAIL FOOD vs. CHIBA BANK | RETAIL FOOD vs. PennyMac Mortgage Investment |
| Singapore Telecommunicatio vs. T Mobile | Singapore Telecommunicatio vs. China Mobile Limited | Singapore Telecommunicatio vs. Verizon Communications | Singapore Telecommunicatio vs. ATT Inc |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |