Correlation Between Singapore Airlines and Berkshire Hills
Can any of the company-specific risk be diversified away by investing in both Singapore Airlines and Berkshire Hills 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 Berkshire Hills 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 Berkshire Hills Bancorp, you can compare the effects of market volatilities on Singapore Airlines and Berkshire Hills 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 Berkshire Hills. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Airlines and Berkshire Hills.
Diversification Opportunities for Singapore Airlines and Berkshire Hills
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Singapore and Berkshire is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Airlines Limited and Berkshire Hills Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkshire Hills Bancorp 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 Berkshire Hills. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berkshire Hills Bancorp has no effect on the direction of Singapore Airlines i.e., Singapore Airlines and Berkshire Hills go up and down completely randomly.
Pair Corralation between Singapore Airlines and Berkshire Hills
Assuming the 90 days trading horizon Singapore Airlines is expected to generate 2.29 times less return on investment than Berkshire Hills. But when comparing it to its historical volatility, Singapore Airlines Limited is 1.85 times less risky than Berkshire Hills. It trades about 0.05 of its potential returns per unit of risk. Berkshire Hills Bancorp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,187 in Berkshire Hills Bancorp on September 14, 2024 and sell it today you would earn a total of 733.00 from holding Berkshire Hills Bancorp or generate 33.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Airlines Limited vs. Berkshire Hills Bancorp
Performance |
| Timeline |
| Singapore Airlines |
| Berkshire Hills Bancorp |
Singapore Airlines and Berkshire Hills Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Airlines and Berkshire Hills
The main advantage of trading using opposite Singapore Airlines and Berkshire Hills positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Airlines position performs unexpectedly, Berkshire Hills 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 Berkshire Hills will offset losses from the drop in Berkshire Hills' long position.| Singapore Airlines vs. RYANAIR HLDGS ADR | Singapore Airlines vs. Ryanair Holdings plc | Singapore Airlines vs. Superior Plus Corp | Singapore Airlines vs. SIVERS SEMICONDUCTORS AB |
| Berkshire Hills vs. PennantPark Investment | Berkshire Hills vs. NXP Semiconductors NV | Berkshire Hills vs. Apollo Investment Corp | Berkshire Hills vs. VIRGIN WINES UK |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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