Correlation Between Singular Health and De Grey
Can any of the company-specific risk be diversified away by investing in both Singular Health and De Grey 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 Singular Health and De Grey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singular Health Group and De Grey Mining, you can compare the effects of market volatilities on Singular Health and De Grey 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 Singular Health with a short position of De Grey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singular Health and De Grey.
Diversification Opportunities for Singular Health and De Grey
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Singular and DEG is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Singular Health Group and De Grey Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on De Grey Mining and Singular Health 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 Singular Health Group are associated (or correlated) with De Grey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of De Grey Mining has no effect on the direction of Singular Health i.e., Singular Health and De Grey go up and down completely randomly.
Pair Corralation between Singular Health and De Grey
Assuming the 90 days trading horizon Singular Health Group is expected to generate 2.85 times more return on investment than De Grey. However, Singular Health is 2.85 times more volatile than De Grey Mining. It trades about 0.06 of its potential returns per unit of risk. De Grey Mining is currently generating about 0.01 per unit of risk. If you would invest 5.20 in Singular Health Group on August 29, 2024 and sell it today you would earn a total of 6.80 from holding Singular Health Group or generate 130.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singular Health Group vs. De Grey Mining
Performance |
| Timeline |
| Singular Health Group |
| De Grey Mining |
Singular Health and De Grey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singular Health and De Grey
The main advantage of trading using opposite Singular Health and De Grey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singular Health position performs unexpectedly, De Grey 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 De Grey will offset losses from the drop in De Grey's long position.| Singular Health vs. Vulcan Steel | Singular Health vs. Hotel Property Investments | Singular Health vs. The Environmental Group | Singular Health vs. Regal Investment |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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