Correlation Between STGEORGE MINING and SINGAPORE AIRLINES
Can any of the company-specific risk be diversified away by investing in both STGEORGE MINING 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 STGEORGE MINING and SINGAPORE AIRLINES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STGEORGE MINING LTD and SINGAPORE AIRLINES, you can compare the effects of market volatilities on STGEORGE MINING 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 STGEORGE MINING with a short position of SINGAPORE AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of STGEORGE MINING and SINGAPORE AIRLINES.
Diversification Opportunities for STGEORGE MINING and SINGAPORE AIRLINES
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between STGEORGE and SINGAPORE is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding STGEORGE MINING LTD and SINGAPORE AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE AIRLINES and STGEORGE MINING 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 STGEORGE MINING LTD 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 STGEORGE MINING i.e., STGEORGE MINING and SINGAPORE AIRLINES go up and down completely randomly.
Pair Corralation between STGEORGE MINING and SINGAPORE AIRLINES
Assuming the 90 days horizon STGEORGE MINING LTD is expected to generate 10.8 times more return on investment than SINGAPORE AIRLINES. However, STGEORGE MINING is 10.8 times more volatile than SINGAPORE AIRLINES. It trades about 0.04 of its potential returns per unit of risk. SINGAPORE AIRLINES is currently generating about 0.05 per unit of risk. If you would invest 4.40 in STGEORGE MINING LTD on November 5, 2024 and sell it today you would lose (3.15) from holding STGEORGE MINING LTD or give up 71.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STGEORGE MINING LTD vs. SINGAPORE AIRLINES
Performance |
| Timeline |
| STGEORGE MINING LTD |
| SINGAPORE AIRLINES |
STGEORGE MINING and SINGAPORE AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STGEORGE MINING and SINGAPORE AIRLINES
The main advantage of trading using opposite STGEORGE MINING and SINGAPORE AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STGEORGE MINING 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.| STGEORGE MINING vs. ADRIATIC METALS LS 013355 | STGEORGE MINING vs. Jacquet Metal Service | STGEORGE MINING vs. Prosiebensat 1 Media | STGEORGE MINING vs. FIREWEED METALS P |
| SINGAPORE AIRLINES vs. Solstad Offshore ASA | SINGAPORE AIRLINES vs. Cal Maine Foods | SINGAPORE AIRLINES vs. Taiwan Semiconductor Manufacturing | SINGAPORE AIRLINES vs. Cal Maine Foods |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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