Correlation Between NH HOTEL and SINGAPORE AIRLINES
Can any of the company-specific risk be diversified away by investing in both NH HOTEL 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 NH HOTEL and SINGAPORE AIRLINES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NH HOTEL GROUP and SINGAPORE AIRLINES, you can compare the effects of market volatilities on NH HOTEL 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 NH HOTEL with a short position of SINGAPORE AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH HOTEL and SINGAPORE AIRLINES.
Diversification Opportunities for NH HOTEL and SINGAPORE AIRLINES
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NH5 and SINGAPORE is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding NH HOTEL GROUP and SINGAPORE AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE AIRLINES and NH HOTEL 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 NH HOTEL GROUP 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 NH HOTEL i.e., NH HOTEL and SINGAPORE AIRLINES go up and down completely randomly.
Pair Corralation between NH HOTEL and SINGAPORE AIRLINES
Assuming the 90 days trading horizon NH HOTEL is expected to generate 14.08 times less return on investment than SINGAPORE AIRLINES. In addition to that, NH HOTEL is 2.71 times more volatile than SINGAPORE AIRLINES. It trades about 0.0 of its total potential returns per unit of risk. SINGAPORE AIRLINES is currently generating about 0.07 per unit of volatility. If you would invest 434.00 in SINGAPORE AIRLINES on September 2, 2024 and sell it today you would earn a total of 6.00 from holding SINGAPORE AIRLINES or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH HOTEL GROUP vs. SINGAPORE AIRLINES
Performance |
| Timeline |
| NH HOTEL GROUP |
| SINGAPORE AIRLINES |
NH HOTEL and SINGAPORE AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH HOTEL and SINGAPORE AIRLINES
The main advantage of trading using opposite NH HOTEL and SINGAPORE AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH HOTEL 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.| NH HOTEL vs. SIVERS SEMICONDUCTORS AB | NH HOTEL vs. Darden Restaurants | NH HOTEL vs. Reliance Steel Aluminum | NH HOTEL vs. Q2M Managementberatung AG |
| SINGAPORE AIRLINES vs. SIVERS SEMICONDUCTORS AB | SINGAPORE AIRLINES vs. Darden Restaurants | SINGAPORE AIRLINES vs. Reliance Steel Aluminum | SINGAPORE AIRLINES vs. Q2M Managementberatung AG |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |