Correlation Between Singapore Airlines and AEON MALL
Can any of the company-specific risk be diversified away by investing in both Singapore Airlines and AEON MALL 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 AEON MALL 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 AEON MALL LTD, you can compare the effects of market volatilities on Singapore Airlines and AEON MALL 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 AEON MALL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Airlines and AEON MALL.
Diversification Opportunities for Singapore Airlines and AEON MALL
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Singapore and AEON is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Airlines Limited and AEON MALL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEON MALL LTD 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 AEON MALL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEON MALL LTD has no effect on the direction of Singapore Airlines i.e., Singapore Airlines and AEON MALL go up and down completely randomly.
Pair Corralation between Singapore Airlines and AEON MALL
Assuming the 90 days trading horizon Singapore Airlines is expected to generate 1.42 times less return on investment than AEON MALL. But when comparing it to its historical volatility, Singapore Airlines Limited is 1.09 times less risky than AEON MALL. It trades about 0.03 of its potential returns per unit of risk. AEON MALL LTD is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,070 in AEON MALL LTD on September 12, 2024 and sell it today you would earn a total of 160.00 from holding AEON MALL LTD or generate 14.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Airlines Limited vs. AEON MALL LTD
Performance |
| Timeline |
| Singapore Airlines |
| AEON MALL LTD |
Singapore Airlines and AEON MALL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Airlines and AEON MALL
The main advantage of trading using opposite Singapore Airlines and AEON MALL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Airlines position performs unexpectedly, AEON MALL 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 AEON MALL will offset losses from the drop in AEON MALL's 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 |
| AEON MALL vs. TITANIUM TRANSPORTGROUP | AEON MALL vs. Food Life Companies | AEON MALL vs. Transport International Holdings | AEON MALL vs. COPLAND ROAD CAPITAL |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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