Correlation Between KORE Group and Singapore Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both KORE Group 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 KORE Group and Singapore Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KORE Group Holdings and Singapore Telecommunications Limited, you can compare the effects of market volatilities on KORE Group 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 KORE Group with a short position of Singapore Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of KORE Group and Singapore Telecommunicatio.
Diversification Opportunities for KORE Group and Singapore Telecommunicatio
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between KORE and Singapore is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding KORE Group Holdings and Singapore Telecommunications L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Telecommunicatio and KORE Group 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 KORE Group Holdings 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 KORE Group i.e., KORE Group and Singapore Telecommunicatio go up and down completely randomly.
Pair Corralation between KORE Group and Singapore Telecommunicatio
Given the investment horizon of 90 days KORE Group Holdings is expected to under-perform the Singapore Telecommunicatio. In addition to that, KORE Group is 5.46 times more volatile than Singapore Telecommunications Limited. It trades about -0.09 of its total potential returns per unit of risk. Singapore Telecommunications Limited is currently generating about -0.31 per unit of volatility. If you would invest 241.00 in Singapore Telecommunications Limited on August 29, 2024 and sell it today you would lose (18.00) from holding Singapore Telecommunications Limited or give up 7.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KORE Group Holdings vs. Singapore Telecommunications L
Performance |
| Timeline |
| KORE Group Holdings |
| Singapore Telecommunicatio |
KORE Group and Singapore Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KORE Group and Singapore Telecommunicatio
The main advantage of trading using opposite KORE Group and Singapore Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KORE Group 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.| KORE Group vs. Liberty Broadband Srs | KORE Group vs. Cable One | KORE Group vs. Liberty Broadband Corp | KORE Group vs. Telkom Indonesia Tbk |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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