Correlation Between Singapore Airlines and Blackstone
Can any of the company-specific risk be diversified away by investing in both Singapore Airlines and Blackstone 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 Blackstone 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 Blackstone Group, you can compare the effects of market volatilities on Singapore Airlines and Blackstone 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 Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Airlines and Blackstone.
Diversification Opportunities for Singapore Airlines and Blackstone
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Singapore and Blackstone is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Airlines Limited and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group 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 Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of Singapore Airlines i.e., Singapore Airlines and Blackstone go up and down completely randomly.
Pair Corralation between Singapore Airlines and Blackstone
Assuming the 90 days trading horizon Singapore Airlines is expected to generate 2.39 times less return on investment than Blackstone. But when comparing it to its historical volatility, Singapore Airlines Limited is 1.5 times less risky than Blackstone. It trades about 0.05 of its potential returns per unit of risk. Blackstone Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 8,358 in Blackstone Group on November 8, 2024 and sell it today you would earn a total of 8,062 from holding Blackstone Group or generate 96.46% 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. Blackstone Group
Performance |
| Timeline |
| Singapore Airlines |
| Blackstone Group |
Singapore Airlines and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Airlines and Blackstone
The main advantage of trading using opposite Singapore Airlines and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Airlines position performs unexpectedly, Blackstone 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 Blackstone will offset losses from the drop in Blackstone's long position.| Singapore Airlines vs. JSC Halyk bank | Singapore Airlines vs. BANK OF CHINA | Singapore Airlines vs. Erste Group Bank | Singapore Airlines vs. JAPAN TOBACCO UNSPADR12 |
| Blackstone vs. Northern Data AG | Blackstone vs. T MOBILE US | Blackstone vs. Pure Storage | Blackstone vs. Ribbon Communications |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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