Correlation Between Singapore Reinsurance and Food Life
Can any of the company-specific risk be diversified away by investing in both Singapore Reinsurance and Food Life 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 Singapore Reinsurance and Food Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singapore Reinsurance and Food Life Companies, you can compare the effects of market volatilities on Singapore Reinsurance and Food Life 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 Singapore Reinsurance with a short position of Food Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Reinsurance and Food Life.
Diversification Opportunities for Singapore Reinsurance and Food Life
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Singapore and Food is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Reinsurance and Food Life Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Food Life Companies and Singapore Reinsurance 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 Singapore Reinsurance are associated (or correlated) with Food Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Food Life Companies has no effect on the direction of Singapore Reinsurance i.e., Singapore Reinsurance and Food Life go up and down completely randomly.
Pair Corralation between Singapore Reinsurance and Food Life
Assuming the 90 days trading horizon Singapore Reinsurance is expected to generate 1.0 times more return on investment than Food Life. However, Singapore Reinsurance is 1.0 times more volatile than Food Life Companies. It trades about 0.06 of its potential returns per unit of risk. Food Life Companies is currently generating about 0.05 per unit of risk. If you would invest 2,460 in Singapore Reinsurance on September 15, 2024 and sell it today you would earn a total of 960.00 from holding Singapore Reinsurance or generate 39.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Reinsurance vs. Food Life Companies
Performance |
| Timeline |
| Singapore Reinsurance |
| Food Life Companies |
Singapore Reinsurance and Food Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Reinsurance and Food Life
The main advantage of trading using opposite Singapore Reinsurance and Food Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Reinsurance position performs unexpectedly, Food Life 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 Food Life will offset losses from the drop in Food Life's long position.| Singapore Reinsurance vs. Apple Inc | Singapore Reinsurance vs. Apple Inc | Singapore Reinsurance vs. Apple Inc | Singapore Reinsurance vs. Apple Inc |
| Food Life vs. Starbucks | Food Life vs. Superior Plus Corp | Food Life vs. SIVERS SEMICONDUCTORS AB | Food Life vs. NorAm Drilling AS |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |