Correlation Between Singapore Reinsurance and Reinsurance Group
Can any of the company-specific risk be diversified away by investing in both Singapore Reinsurance and Reinsurance Group 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 Reinsurance Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singapore Reinsurance and Reinsurance Group of, you can compare the effects of market volatilities on Singapore Reinsurance and Reinsurance Group 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 Reinsurance Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Reinsurance and Reinsurance Group.
Diversification Opportunities for Singapore Reinsurance and Reinsurance Group
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Singapore and Reinsurance is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Reinsurance and Reinsurance Group of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reinsurance Group 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 Reinsurance Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reinsurance Group has no effect on the direction of Singapore Reinsurance i.e., Singapore Reinsurance and Reinsurance Group go up and down completely randomly.
Pair Corralation between Singapore Reinsurance and Reinsurance Group
Assuming the 90 days trading horizon Singapore Reinsurance is expected to generate 1.12 times more return on investment than Reinsurance Group. However, Singapore Reinsurance is 1.12 times more volatile than Reinsurance Group of. It trades about 0.08 of its potential returns per unit of risk. Reinsurance Group of is currently generating about 0.08 per unit of risk. If you would invest 3,120 in Singapore Reinsurance on August 31, 2024 and sell it today you would earn a total of 360.00 from holding Singapore Reinsurance or generate 11.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Reinsurance vs. Reinsurance Group of
Performance |
| Timeline |
| Singapore Reinsurance |
| Reinsurance Group |
Singapore Reinsurance and Reinsurance Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Reinsurance and Reinsurance Group
The main advantage of trading using opposite Singapore Reinsurance and Reinsurance Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Reinsurance position performs unexpectedly, Reinsurance Group 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 Reinsurance Group will offset losses from the drop in Reinsurance Group's long position.| Singapore Reinsurance vs. ScanSource | Singapore Reinsurance vs. TYSON FOODS A | Singapore Reinsurance vs. ULTRA CLEAN HLDGS | Singapore Reinsurance vs. Cleanaway Waste Management |
| Reinsurance Group vs. Corporate Travel Management | Reinsurance Group vs. XLMedia PLC | Reinsurance Group vs. Jupiter Fund Management | Reinsurance Group vs. Playtech 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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