Correlation Between Performance Food and Singapore Reinsurance
Can any of the company-specific risk be diversified away by investing in both Performance Food and Singapore Reinsurance 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 Performance Food and Singapore Reinsurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Performance Food Group and Singapore Reinsurance, you can compare the effects of market volatilities on Performance Food and Singapore Reinsurance 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 Performance Food with a short position of Singapore Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Performance Food and Singapore Reinsurance.
Diversification Opportunities for Performance Food and Singapore Reinsurance
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Performance and Singapore is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Performance Food Group and Singapore Reinsurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Reinsurance and Performance Food 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 Performance Food Group are associated (or correlated) with Singapore Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Reinsurance has no effect on the direction of Performance Food i.e., Performance Food and Singapore Reinsurance go up and down completely randomly.
Pair Corralation between Performance Food and Singapore Reinsurance
Assuming the 90 days trading horizon Performance Food Group is expected to generate 0.65 times more return on investment than Singapore Reinsurance. However, Performance Food Group is 1.53 times less risky than Singapore Reinsurance. It trades about 0.1 of its potential returns per unit of risk. Singapore Reinsurance is currently generating about 0.06 per unit of risk. If you would invest 5,700 in Performance Food Group on September 15, 2024 and sell it today you would earn a total of 2,650 from holding Performance Food Group or generate 46.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Performance Food Group vs. Singapore Reinsurance
Performance |
| Timeline |
| Performance Food |
| Singapore Reinsurance |
Performance Food and Singapore Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Performance Food and Singapore Reinsurance
The main advantage of trading using opposite Performance Food and Singapore Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Performance Food position performs unexpectedly, Singapore Reinsurance 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 Reinsurance will offset losses from the drop in Singapore Reinsurance's long position.| Performance Food vs. NorAm Drilling AS | Performance Food vs. Broadridge Financial Solutions | Performance Food vs. Bumrungrad Hospital Public | Performance Food vs. Broadcom |
| Singapore Reinsurance vs. Apple Inc | Singapore Reinsurance vs. Apple Inc | Singapore Reinsurance vs. Apple Inc | Singapore Reinsurance vs. Apple Inc |
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 Stocks Directory module to find actively traded stocks across global markets.
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