Correlation Between Sixt Leasing and Singapore Airlines
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing 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 Sixt Leasing and Singapore Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixt Leasing SE and Singapore Airlines Limited, you can compare the effects of market volatilities on Sixt Leasing 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 Sixt Leasing with a short position of Singapore Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and Singapore Airlines.
Diversification Opportunities for Sixt Leasing and Singapore Airlines
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sixt and Singapore is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and Singapore Airlines Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Airlines and Sixt Leasing 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 Sixt Leasing SE 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 Sixt Leasing i.e., Sixt Leasing and Singapore Airlines go up and down completely randomly.
Pair Corralation between Sixt Leasing and Singapore Airlines
Assuming the 90 days trading horizon Sixt Leasing SE is expected to under-perform the Singapore Airlines. In addition to that, Sixt Leasing is 1.94 times more volatile than Singapore Airlines Limited. It trades about -0.19 of its total potential returns per unit of risk. Singapore Airlines Limited is currently generating about -0.01 per unit of volatility. If you would invest 451.00 in Singapore Airlines Limited on October 11, 2024 and sell it today you would lose (1.00) from holding Singapore Airlines Limited or give up 0.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Sixt Leasing SE vs. Singapore Airlines Limited
Performance |
| Timeline |
| Sixt Leasing SE |
| Singapore Airlines |
Sixt Leasing and Singapore Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and Singapore Airlines
The main advantage of trading using opposite Sixt Leasing and Singapore Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing 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.| Sixt Leasing vs. SYSTEMAIR AB | Sixt Leasing vs. Entravision Communications | Sixt Leasing vs. FORWARD AIR P | Sixt Leasing vs. Cogent Communications Holdings |
| Singapore Airlines vs. JLF INVESTMENT | Singapore Airlines vs. Apollo Investment Corp | Singapore Airlines vs. SLR Investment Corp | Singapore Airlines vs. WisdomTree Investments |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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