Correlation Between Singapore Reinsurance and PLAY2CHILL
Can any of the company-specific risk be diversified away by investing in both Singapore Reinsurance and PLAY2CHILL 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 PLAY2CHILL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singapore Reinsurance and PLAY2CHILL SA ZY, you can compare the effects of market volatilities on Singapore Reinsurance and PLAY2CHILL 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 PLAY2CHILL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Reinsurance and PLAY2CHILL.
Diversification Opportunities for Singapore Reinsurance and PLAY2CHILL
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Singapore and PLAY2CHILL is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Reinsurance and PLAY2CHILL SA ZY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAY2CHILL SA ZY 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 PLAY2CHILL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAY2CHILL SA ZY has no effect on the direction of Singapore Reinsurance i.e., Singapore Reinsurance and PLAY2CHILL go up and down completely randomly.
Pair Corralation between Singapore Reinsurance and PLAY2CHILL
Assuming the 90 days trading horizon Singapore Reinsurance is expected to generate 1.12 times more return on investment than PLAY2CHILL. However, Singapore Reinsurance is 1.12 times more volatile than PLAY2CHILL SA ZY. It trades about 0.02 of its potential returns per unit of risk. PLAY2CHILL SA ZY is currently generating about -0.02 per unit of risk. If you would invest 3,500 in Singapore Reinsurance on October 30, 2024 and sell it today you would earn a total of 260.00 from holding Singapore Reinsurance or generate 7.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Reinsurance vs. PLAY2CHILL SA ZY
Performance |
| Timeline |
| Singapore Reinsurance |
| PLAY2CHILL SA ZY |
Singapore Reinsurance and PLAY2CHILL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Reinsurance and PLAY2CHILL
The main advantage of trading using opposite Singapore Reinsurance and PLAY2CHILL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Reinsurance position performs unexpectedly, PLAY2CHILL 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 PLAY2CHILL will offset losses from the drop in PLAY2CHILL's long position.| Singapore Reinsurance vs. Singapore Telecommunications Limited | Singapore Reinsurance vs. SOGECLAIR SA INH | Singapore Reinsurance vs. Westinghouse Air Brake | Singapore Reinsurance vs. Pentair plc |
| PLAY2CHILL vs. Cairo Communication SpA | PLAY2CHILL vs. Broadridge Financial Solutions | PLAY2CHILL vs. EVS Broadcast Equipment | PLAY2CHILL vs. NAGOYA RAILROAD |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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