Correlation Between Caltagirone SpA and SINGAPORE AIRLINES
Can any of the company-specific risk be diversified away by investing in both Caltagirone SpA 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 Caltagirone SpA and SINGAPORE AIRLINES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caltagirone SpA and SINGAPORE AIRLINES, you can compare the effects of market volatilities on Caltagirone SpA 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 Caltagirone SpA with a short position of SINGAPORE AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caltagirone SpA and SINGAPORE AIRLINES.
Diversification Opportunities for Caltagirone SpA and SINGAPORE AIRLINES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Caltagirone and SINGAPORE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Caltagirone SpA and SINGAPORE AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE AIRLINES and Caltagirone SpA 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 Caltagirone SpA 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 Caltagirone SpA i.e., Caltagirone SpA and SINGAPORE AIRLINES go up and down completely randomly.
Pair Corralation between Caltagirone SpA and SINGAPORE AIRLINES
Assuming the 90 days trading horizon Caltagirone SpA is expected to generate 2.25 times less return on investment than SINGAPORE AIRLINES. But when comparing it to its historical volatility, Caltagirone SpA is 1.06 times less risky than SINGAPORE AIRLINES. It trades about 0.1 of its potential returns per unit of risk. SINGAPORE AIRLINES is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 430.00 in SINGAPORE AIRLINES on September 25, 2024 and sell it today you would earn a total of 17.00 from holding SINGAPORE AIRLINES or generate 3.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caltagirone SpA vs. SINGAPORE AIRLINES
Performance |
| Timeline |
| Caltagirone SpA |
| SINGAPORE AIRLINES |
Caltagirone SpA and SINGAPORE AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caltagirone SpA and SINGAPORE AIRLINES
The main advantage of trading using opposite Caltagirone SpA and SINGAPORE AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caltagirone SpA 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.| Caltagirone SpA vs. Apple Inc | Caltagirone SpA vs. Apple Inc | Caltagirone SpA vs. Apple Inc | Caltagirone SpA vs. Apple Inc |
| SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Microsoft |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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