Correlation Between Sembcorp Marine and FIRST SAVINGS
Can any of the company-specific risk be diversified away by investing in both Sembcorp Marine and FIRST SAVINGS 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 Sembcorp Marine and FIRST SAVINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sembcorp Marine and FIRST SAVINGS FINL, you can compare the effects of market volatilities on Sembcorp Marine and FIRST SAVINGS 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 Sembcorp Marine with a short position of FIRST SAVINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sembcorp Marine and FIRST SAVINGS.
Diversification Opportunities for Sembcorp Marine and FIRST SAVINGS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sembcorp and FIRST is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sembcorp Marine and FIRST SAVINGS FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIRST SAVINGS FINL and Sembcorp Marine 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 Sembcorp Marine are associated (or correlated) with FIRST SAVINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIRST SAVINGS FINL has no effect on the direction of Sembcorp Marine i.e., Sembcorp Marine and FIRST SAVINGS go up and down completely randomly.
Pair Corralation between Sembcorp Marine and FIRST SAVINGS
If you would invest 2,187 in FIRST SAVINGS FINL on October 26, 2024 and sell it today you would earn a total of 113.00 from holding FIRST SAVINGS FINL or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sembcorp Marine vs. FIRST SAVINGS FINL
Performance |
| Timeline |
| Sembcorp Marine |
| FIRST SAVINGS FINL |
Sembcorp Marine and FIRST SAVINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sembcorp Marine and FIRST SAVINGS
The main advantage of trading using opposite Sembcorp Marine and FIRST SAVINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sembcorp Marine position performs unexpectedly, FIRST SAVINGS 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 FIRST SAVINGS will offset losses from the drop in FIRST SAVINGS's long position.| Sembcorp Marine vs. MAGNUM MINING EXP | Sembcorp Marine vs. ELL ENVIRONHLDGS HD 0001 | Sembcorp Marine vs. Insteel Industries | Sembcorp Marine vs. Jacquet Metal Service |
| FIRST SAVINGS vs. Osisko Metals | FIRST SAVINGS vs. AMAG Austria Metall | FIRST SAVINGS vs. Yuexiu Transport Infrastructure | FIRST SAVINGS vs. DAIDO METAL TD |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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