Correlation Between Singapore Reinsurance and UNIDOC HEALTH
Can any of the company-specific risk be diversified away by investing in both Singapore Reinsurance and UNIDOC HEALTH 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 UNIDOC HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singapore Reinsurance and UNIDOC HEALTH P, you can compare the effects of market volatilities on Singapore Reinsurance and UNIDOC HEALTH 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 UNIDOC HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Reinsurance and UNIDOC HEALTH.
Diversification Opportunities for Singapore Reinsurance and UNIDOC HEALTH
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Singapore and UNIDOC is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Reinsurance and UNIDOC HEALTH P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNIDOC HEALTH P 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 UNIDOC HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNIDOC HEALTH P has no effect on the direction of Singapore Reinsurance i.e., Singapore Reinsurance and UNIDOC HEALTH go up and down completely randomly.
Pair Corralation between Singapore Reinsurance and UNIDOC HEALTH
Assuming the 90 days trading horizon Singapore Reinsurance is expected to generate 1.18 times less return on investment than UNIDOC HEALTH. But when comparing it to its historical volatility, Singapore Reinsurance is 2.36 times less risky than UNIDOC HEALTH. It trades about 0.21 of its potential returns per unit of risk. UNIDOC HEALTH P is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 32.00 in UNIDOC HEALTH P on October 17, 2024 and sell it today you would earn a total of 2.00 from holding UNIDOC HEALTH P or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Singapore Reinsurance vs. UNIDOC HEALTH P
Performance |
| Timeline |
| Singapore Reinsurance |
| UNIDOC HEALTH P |
Singapore Reinsurance and UNIDOC HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Reinsurance and UNIDOC HEALTH
The main advantage of trading using opposite Singapore Reinsurance and UNIDOC HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Reinsurance position performs unexpectedly, UNIDOC HEALTH 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 UNIDOC HEALTH will offset losses from the drop in UNIDOC HEALTH's long position.| Singapore Reinsurance vs. Summit Materials | Singapore Reinsurance vs. Penn National Gaming | Singapore Reinsurance vs. Media and Games | Singapore Reinsurance vs. OURGAME INTHOLDL 00005 |
| UNIDOC HEALTH vs. Singapore Reinsurance | UNIDOC HEALTH vs. Universal Insurance Holdings | UNIDOC HEALTH vs. EEDUCATION ALBERT AB | UNIDOC HEALTH vs. American Public Education |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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