Correlation Between Singapore Reinsurance and SPECTRAL MEDICAL
Can any of the company-specific risk be diversified away by investing in both Singapore Reinsurance and SPECTRAL MEDICAL 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 SPECTRAL MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singapore Reinsurance and SPECTRAL MEDICAL, you can compare the effects of market volatilities on Singapore Reinsurance and SPECTRAL MEDICAL 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 SPECTRAL MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Reinsurance and SPECTRAL MEDICAL.
Diversification Opportunities for Singapore Reinsurance and SPECTRAL MEDICAL
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Singapore and SPECTRAL is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Reinsurance and SPECTRAL MEDICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPECTRAL MEDICAL 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 SPECTRAL MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPECTRAL MEDICAL has no effect on the direction of Singapore Reinsurance i.e., Singapore Reinsurance and SPECTRAL MEDICAL go up and down completely randomly.
Pair Corralation between Singapore Reinsurance and SPECTRAL MEDICAL
Assuming the 90 days trading horizon Singapore Reinsurance is expected to generate 0.31 times more return on investment than SPECTRAL MEDICAL. However, Singapore Reinsurance is 3.18 times less risky than SPECTRAL MEDICAL. It trades about 0.08 of its potential returns per unit of risk. SPECTRAL MEDICAL is currently generating about -0.05 per unit of risk. If you would invest 3,620 in Singapore Reinsurance on November 7, 2024 and sell it today you would earn a total of 100.00 from holding Singapore Reinsurance or generate 2.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Reinsurance vs. SPECTRAL MEDICAL
Performance |
| Timeline |
| Singapore Reinsurance |
| SPECTRAL MEDICAL |
Singapore Reinsurance and SPECTRAL MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Reinsurance and SPECTRAL MEDICAL
The main advantage of trading using opposite Singapore Reinsurance and SPECTRAL MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Reinsurance position performs unexpectedly, SPECTRAL MEDICAL 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 SPECTRAL MEDICAL will offset losses from the drop in SPECTRAL MEDICAL'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 |
| SPECTRAL MEDICAL vs. WuXi AppTec Co | SPECTRAL MEDICAL vs. Thermo Fisher Scientific | SPECTRAL MEDICAL vs. Danaher | SPECTRAL MEDICAL vs. Danaher |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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