Correlation Between Singapore Reinsurance and LANDSEA GREEN
Can any of the company-specific risk be diversified away by investing in both Singapore Reinsurance and LANDSEA GREEN 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 LANDSEA GREEN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singapore Reinsurance and LANDSEA GREEN MANAGEMENT, you can compare the effects of market volatilities on Singapore Reinsurance and LANDSEA GREEN 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 LANDSEA GREEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Reinsurance and LANDSEA GREEN.
Diversification Opportunities for Singapore Reinsurance and LANDSEA GREEN
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Singapore and LANDSEA is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Reinsurance and LANDSEA GREEN MANAGEMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LANDSEA GREEN MANAGEMENT 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 LANDSEA GREEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LANDSEA GREEN MANAGEMENT has no effect on the direction of Singapore Reinsurance i.e., Singapore Reinsurance and LANDSEA GREEN go up and down completely randomly.
Pair Corralation between Singapore Reinsurance and LANDSEA GREEN
Assuming the 90 days trading horizon Singapore Reinsurance is expected to under-perform the LANDSEA GREEN. But the stock apears to be less risky and, when comparing its historical volatility, Singapore Reinsurance is 150.54 times less risky than LANDSEA GREEN. The stock trades about -0.03 of its potential returns per unit of risk. The LANDSEA GREEN MANAGEMENT is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 0.10 in LANDSEA GREEN MANAGEMENT on November 7, 2024 and sell it today you would earn a total of 0.00 from holding LANDSEA GREEN MANAGEMENT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Reinsurance vs. LANDSEA GREEN MANAGEMENT
Performance |
| Timeline |
| Singapore Reinsurance |
| LANDSEA GREEN MANAGEMENT |
Singapore Reinsurance and LANDSEA GREEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Reinsurance and LANDSEA GREEN
The main advantage of trading using opposite Singapore Reinsurance and LANDSEA GREEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Reinsurance position performs unexpectedly, LANDSEA GREEN 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 LANDSEA GREEN will offset losses from the drop in LANDSEA GREEN's long position.| Singapore Reinsurance vs. Discover Financial Services | Singapore Reinsurance vs. BANK OF CHINA | Singapore Reinsurance vs. ScanSource | Singapore Reinsurance vs. WILLIS LEASE FIN |
| LANDSEA GREEN vs. Tencent Music Entertainment | LANDSEA GREEN vs. Flutter Entertainment PLC | LANDSEA GREEN vs. CODERE ONLINE LUX | LANDSEA GREEN vs. Gruppo Mutuionline SpA |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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