Correlation Between SINGAPORE POST and Chuangs China
Can any of the company-specific risk be diversified away by investing in both SINGAPORE POST and Chuangs China 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 Chuangs China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SINGAPORE POST and Chuangs China Investments, you can compare the effects of market volatilities on SINGAPORE POST and Chuangs China 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 Chuangs China. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINGAPORE POST and Chuangs China.
Diversification Opportunities for SINGAPORE POST and Chuangs China
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SINGAPORE and Chuangs is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding SINGAPORE POST and Chuangs China Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chuangs China Investments 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 Chuangs China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chuangs China Investments has no effect on the direction of SINGAPORE POST i.e., SINGAPORE POST and Chuangs China go up and down completely randomly.
Pair Corralation between SINGAPORE POST and Chuangs China
Assuming the 90 days trading horizon SINGAPORE POST is expected to generate 0.42 times more return on investment than Chuangs China. However, SINGAPORE POST is 2.36 times less risky than Chuangs China. It trades about 0.02 of its potential returns per unit of risk. Chuangs China Investments is currently generating about -0.01 per unit of risk. If you would invest 34.00 in SINGAPORE POST on September 3, 2024 and sell it today you would earn a total of 5.00 from holding SINGAPORE POST or generate 14.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SINGAPORE POST vs. Chuangs China Investments
Performance |
| Timeline |
| SINGAPORE POST |
| Chuangs China Investments |
SINGAPORE POST and Chuangs China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINGAPORE POST and Chuangs China
The main advantage of trading using opposite SINGAPORE POST and Chuangs China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINGAPORE POST position performs unexpectedly, Chuangs China 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 Chuangs China will offset losses from the drop in Chuangs China's long position.| SINGAPORE POST vs. Cal Maine Foods | SINGAPORE POST vs. Tyson Foods | SINGAPORE POST vs. Astral Foods Limited | SINGAPORE POST vs. Lery Seafood Group |
| Chuangs China vs. Treasury Wine Estates | Chuangs China vs. GigaMedia | Chuangs China vs. NAKED WINES PLC | Chuangs China vs. Tencent Music Entertainment |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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