Correlation Between Singapore Technologies and VirTra
Can any of the company-specific risk be diversified away by investing in both Singapore Technologies and VirTra 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 Technologies and VirTra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singapore Technologies Engineering and VirTra Inc, you can compare the effects of market volatilities on Singapore Technologies and VirTra 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 Technologies with a short position of VirTra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Technologies and VirTra.
Diversification Opportunities for Singapore Technologies and VirTra
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Singapore and VirTra is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Technologies Enginee and VirTra Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VirTra Inc and Singapore Technologies 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 Technologies Engineering are associated (or correlated) with VirTra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VirTra Inc has no effect on the direction of Singapore Technologies i.e., Singapore Technologies and VirTra go up and down completely randomly.
Pair Corralation between Singapore Technologies and VirTra
Assuming the 90 days horizon Singapore Technologies Engineering is expected to under-perform the VirTra. But the pink sheet apears to be less risky and, when comparing its historical volatility, Singapore Technologies Engineering is 1.61 times less risky than VirTra. The pink sheet trades about -0.03 of its potential returns per unit of risk. The VirTra Inc is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 636.00 in VirTra Inc on September 13, 2024 and sell it today you would earn a total of 83.00 from holding VirTra Inc or generate 13.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Technologies Enginee vs. VirTra Inc
Performance |
| Timeline |
| Singapore Technologies |
| VirTra Inc |
Singapore Technologies and VirTra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Technologies and VirTra
The main advantage of trading using opposite Singapore Technologies and VirTra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Technologies position performs unexpectedly, VirTra 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 VirTra will offset losses from the drop in VirTra's long position.| Singapore Technologies vs. VirTra Inc | Singapore Technologies vs. BWX Technologies | Singapore Technologies vs. Embraer SA ADR | Singapore Technologies vs. HEICO |
| VirTra vs. Innovative Solutions and | VirTra vs. Park Electrochemical | VirTra vs. Ducommun Incorporated | VirTra vs. National Presto Industries |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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