Correlation Between Singapore Airlines and VIRGIN WINES
Can any of the company-specific risk be diversified away by investing in both Singapore Airlines and VIRGIN WINES 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 Airlines and VIRGIN WINES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singapore Airlines Limited and VIRGIN WINES UK, you can compare the effects of market volatilities on Singapore Airlines and VIRGIN WINES 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 Airlines with a short position of VIRGIN WINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Airlines and VIRGIN WINES.
Diversification Opportunities for Singapore Airlines and VIRGIN WINES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Singapore and VIRGIN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Airlines Limited and VIRGIN WINES UK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIRGIN WINES UK and Singapore Airlines 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 Airlines Limited are associated (or correlated) with VIRGIN WINES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIRGIN WINES UK has no effect on the direction of Singapore Airlines i.e., Singapore Airlines and VIRGIN WINES go up and down completely randomly.
Pair Corralation between Singapore Airlines and VIRGIN WINES
If you would invest 327.00 in Singapore Airlines Limited on September 28, 2024 and sell it today you would earn a total of 122.00 from holding Singapore Airlines Limited or generate 37.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Airlines Limited vs. VIRGIN WINES UK
Performance |
| Timeline |
| Singapore Airlines |
| VIRGIN WINES UK |
Singapore Airlines and VIRGIN WINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Airlines and VIRGIN WINES
The main advantage of trading using opposite Singapore Airlines and VIRGIN WINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Airlines position performs unexpectedly, VIRGIN WINES 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 VIRGIN WINES will offset losses from the drop in VIRGIN WINES's long position.| Singapore Airlines vs. CHINA EDUCATION GROUP | Singapore Airlines vs. Xinhua Winshare Publishing | Singapore Airlines vs. Astral Foods Limited | Singapore Airlines vs. Tyson Foods |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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