Correlation Between OFFICE DEPOT and Singapore Airlines
Can any of the company-specific risk be diversified away by investing in both OFFICE DEPOT 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 OFFICE DEPOT and Singapore Airlines 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 Airlines Limited, you can compare the effects of market volatilities on OFFICE DEPOT 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 OFFICE DEPOT with a short position of Singapore Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFFICE DEPOT and Singapore Airlines.
Diversification Opportunities for OFFICE DEPOT and Singapore Airlines
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 Airlines Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Airlines 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 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 OFFICE DEPOT i.e., OFFICE DEPOT and Singapore Airlines go up and down completely randomly.
Pair Corralation between OFFICE DEPOT and Singapore Airlines
If you would invest 391.00 in Singapore Airlines Limited on September 4, 2024 and sell it today you would earn a total of 51.00 from holding Singapore Airlines Limited or generate 13.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OFFICE DEPOT vs. Singapore Airlines Limited
Performance |
| Timeline |
| OFFICE DEPOT |
| Singapore Airlines |
OFFICE DEPOT and Singapore Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFFICE DEPOT and Singapore Airlines
The main advantage of trading using opposite OFFICE DEPOT and Singapore Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFFICE DEPOT 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.| OFFICE DEPOT vs. TOTAL GABON | OFFICE DEPOT vs. Walgreens Boots Alliance | OFFICE DEPOT vs. Peak Resources Limited |
| Singapore Airlines vs. Delta Air Lines | Singapore Airlines vs. AIR CHINA LTD | Singapore Airlines vs. RYANAIR HLDGS ADR | Singapore Airlines vs. Southwest Airlines Co |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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