Correlation Between Singapore Reinsurance and GameStop Corp
Can any of the company-specific risk be diversified away by investing in both Singapore Reinsurance and GameStop Corp 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 GameStop Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singapore Reinsurance and GameStop Corp, you can compare the effects of market volatilities on Singapore Reinsurance and GameStop Corp 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 GameStop Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Reinsurance and GameStop Corp.
Diversification Opportunities for Singapore Reinsurance and GameStop Corp
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Singapore and GameStop is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Reinsurance and GameStop Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameStop Corp 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 GameStop Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameStop Corp has no effect on the direction of Singapore Reinsurance i.e., Singapore Reinsurance and GameStop Corp go up and down completely randomly.
Pair Corralation between Singapore Reinsurance and GameStop Corp
Assuming the 90 days trading horizon Singapore Reinsurance is expected to generate 0.84 times more return on investment than GameStop Corp. However, Singapore Reinsurance is 1.19 times less risky than GameStop Corp. It trades about 0.17 of its potential returns per unit of risk. GameStop Corp is currently generating about -0.48 per unit of risk. If you would invest 3,500 in Singapore Reinsurance on November 8, 2024 and sell it today you would earn a total of 300.00 from holding Singapore Reinsurance or generate 8.57% 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. GameStop Corp
Performance |
| Timeline |
| Singapore Reinsurance |
| GameStop Corp |
Singapore Reinsurance and GameStop Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Reinsurance and GameStop Corp
The main advantage of trading using opposite Singapore Reinsurance and GameStop Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Reinsurance position performs unexpectedly, GameStop Corp 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 GameStop Corp will offset losses from the drop in GameStop Corp's long position.| Singapore Reinsurance vs. Tyson Foods | Singapore Reinsurance vs. MTY Food Group | Singapore Reinsurance vs. Austevoll Seafood ASA | Singapore Reinsurance vs. CORNISH METALS INC |
| GameStop Corp vs. Monster Beverage Corp | GameStop Corp vs. BII Railway Transportation | GameStop Corp vs. THAI BEVERAGE | GameStop Corp 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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 | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |