Correlation Between Singapore Reinsurance and MAVEN WIRELESS
Can any of the company-specific risk be diversified away by investing in both Singapore Reinsurance and MAVEN WIRELESS 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 MAVEN WIRELESS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singapore Reinsurance and MAVEN WIRELESS SWEDEN, you can compare the effects of market volatilities on Singapore Reinsurance and MAVEN WIRELESS 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 MAVEN WIRELESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Reinsurance and MAVEN WIRELESS.
Diversification Opportunities for Singapore Reinsurance and MAVEN WIRELESS
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Singapore and MAVEN is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Reinsurance and MAVEN WIRELESS SWEDEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAVEN WIRELESS SWEDEN 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 MAVEN WIRELESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAVEN WIRELESS SWEDEN has no effect on the direction of Singapore Reinsurance i.e., Singapore Reinsurance and MAVEN WIRELESS go up and down completely randomly.
Pair Corralation between Singapore Reinsurance and MAVEN WIRELESS
Assuming the 90 days trading horizon Singapore Reinsurance is expected to generate 0.8 times more return on investment than MAVEN WIRELESS. However, Singapore Reinsurance is 1.25 times less risky than MAVEN WIRELESS. It trades about 0.12 of its potential returns per unit of risk. MAVEN WIRELESS SWEDEN is currently generating about -0.12 per unit of risk. If you would invest 2,480 in Singapore Reinsurance on September 2, 2024 and sell it today you would earn a total of 1,000.00 from holding Singapore Reinsurance or generate 40.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Reinsurance vs. MAVEN WIRELESS SWEDEN
Performance |
| Timeline |
| Singapore Reinsurance |
| MAVEN WIRELESS SWEDEN |
Singapore Reinsurance and MAVEN WIRELESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Reinsurance and MAVEN WIRELESS
The main advantage of trading using opposite Singapore Reinsurance and MAVEN WIRELESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Reinsurance position performs unexpectedly, MAVEN WIRELESS 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 MAVEN WIRELESS will offset losses from the drop in MAVEN WIRELESS's long position.| Singapore Reinsurance vs. SIVERS SEMICONDUCTORS AB | Singapore Reinsurance vs. Darden Restaurants | Singapore Reinsurance vs. Reliance Steel Aluminum | Singapore Reinsurance vs. Q2M Managementberatung AG |
| MAVEN WIRELESS vs. KIMBALL ELECTRONICS | MAVEN WIRELESS vs. Elmos Semiconductor SE | MAVEN WIRELESS vs. Benchmark Electronics | MAVEN WIRELESS vs. Fevertree Drinks PLC |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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