Correlation Between SINGAPORE POST and TOTAL GABON
Can any of the company-specific risk be diversified away by investing in both SINGAPORE POST and TOTAL GABON 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 POST and TOTAL GABON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SINGAPORE POST and TOTAL GABON, you can compare the effects of market volatilities on SINGAPORE POST and TOTAL GABON 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 POST with a short position of TOTAL GABON. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINGAPORE POST and TOTAL GABON.
Diversification Opportunities for SINGAPORE POST and TOTAL GABON
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SINGAPORE and TOTAL is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding SINGAPORE POST and TOTAL GABON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOTAL GABON and SINGAPORE POST 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 POST are associated (or correlated) with TOTAL GABON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOTAL GABON has no effect on the direction of SINGAPORE POST i.e., SINGAPORE POST and TOTAL GABON go up and down completely randomly.
Pair Corralation between SINGAPORE POST and TOTAL GABON
Assuming the 90 days trading horizon SINGAPORE POST is expected to generate 0.65 times more return on investment than TOTAL GABON. However, SINGAPORE POST is 1.53 times less risky than TOTAL GABON. It trades about 0.07 of its potential returns per unit of risk. TOTAL GABON is currently generating about 0.04 per unit of risk. If you would invest 32.00 in SINGAPORE POST on September 12, 2024 and sell it today you would earn a total of 9.00 from holding SINGAPORE POST or generate 28.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SINGAPORE POST vs. TOTAL GABON
Performance |
| Timeline |
| SINGAPORE POST |
| TOTAL GABON |
SINGAPORE POST and TOTAL GABON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINGAPORE POST and TOTAL GABON
The main advantage of trading using opposite SINGAPORE POST and TOTAL GABON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINGAPORE POST position performs unexpectedly, TOTAL GABON 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 TOTAL GABON will offset losses from the drop in TOTAL GABON's long position.| SINGAPORE POST vs. GRIFFIN MINING LTD | SINGAPORE POST vs. Jacquet Metal Service | SINGAPORE POST vs. Guidewire Software | SINGAPORE POST vs. Zijin Mining Group |
| TOTAL GABON vs. TYSON FOODS A | TOTAL GABON vs. National Beverage Corp | TOTAL GABON vs. Food Life Companies | TOTAL GABON vs. SENECA FOODS A |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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