Correlation Between OFFICE DEPOT and SINGAPORE POST
Can any of the company-specific risk be diversified away by investing in both OFFICE DEPOT and SINGAPORE POST 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 OFFICE DEPOT and SINGAPORE POST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFFICE DEPOT and SINGAPORE POST, you can compare the effects of market volatilities on OFFICE DEPOT and SINGAPORE POST 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 OFFICE DEPOT with a short position of SINGAPORE POST. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFFICE DEPOT and SINGAPORE POST.
Diversification Opportunities for OFFICE DEPOT and SINGAPORE POST
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OFFICE and SINGAPORE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OFFICE DEPOT and SINGAPORE POST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE POST and OFFICE DEPOT 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 OFFICE DEPOT are associated (or correlated) with SINGAPORE POST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINGAPORE POST has no effect on the direction of OFFICE DEPOT i.e., OFFICE DEPOT and SINGAPORE POST go up and down completely randomly.
Pair Corralation between OFFICE DEPOT and SINGAPORE POST
If you would invest 36.00 in SINGAPORE POST on August 30, 2024 and sell it today you would earn a total of 4.00 from holding SINGAPORE POST or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
OFFICE DEPOT vs. SINGAPORE POST
Performance |
| Timeline |
| OFFICE DEPOT |
| SINGAPORE POST |
OFFICE DEPOT and SINGAPORE POST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFFICE DEPOT and SINGAPORE POST
The main advantage of trading using opposite OFFICE DEPOT and SINGAPORE POST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFFICE DEPOT position performs unexpectedly, SINGAPORE POST 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 POST will offset losses from the drop in SINGAPORE POST's long position.| OFFICE DEPOT vs. CITY OFFICE REIT | OFFICE DEPOT vs. Micron Technology | OFFICE DEPOT vs. GUARDANT HEALTH CL | OFFICE DEPOT vs. X FAB Silicon Foundries |
| SINGAPORE POST vs. SYSTEMAIR AB | SINGAPORE POST vs. Air New Zealand | SINGAPORE POST vs. Pentair plc | SINGAPORE POST vs. FORWARD AIR P |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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