Correlation Between Singapore Airlines and Forsys Metals
Can any of the company-specific risk be diversified away by investing in both Singapore Airlines and Forsys Metals 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 Forsys Metals 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 Forsys Metals Corp, you can compare the effects of market volatilities on Singapore Airlines and Forsys Metals 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 Forsys Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Airlines and Forsys Metals.
Diversification Opportunities for Singapore Airlines and Forsys Metals
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Singapore and Forsys is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Airlines Limited and Forsys Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forsys Metals Corp 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 Forsys Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forsys Metals Corp has no effect on the direction of Singapore Airlines i.e., Singapore Airlines and Forsys Metals go up and down completely randomly.
Pair Corralation between Singapore Airlines and Forsys Metals
Assuming the 90 days trading horizon Singapore Airlines Limited is expected to generate 0.1 times more return on investment than Forsys Metals. However, Singapore Airlines Limited is 10.35 times less risky than Forsys Metals. It trades about -0.23 of its potential returns per unit of risk. Forsys Metals Corp is currently generating about -0.03 per unit of risk. If you would invest 458.00 in Singapore Airlines Limited on October 31, 2024 and sell it today you would lose (17.00) from holding Singapore Airlines Limited or give up 3.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Airlines Limited vs. Forsys Metals Corp
Performance |
| Timeline |
| Singapore Airlines |
| Forsys Metals Corp |
Singapore Airlines and Forsys Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Airlines and Forsys Metals
The main advantage of trading using opposite Singapore Airlines and Forsys Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Airlines position performs unexpectedly, Forsys Metals 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 Forsys Metals will offset losses from the drop in Forsys Metals' long position.| Singapore Airlines vs. WisdomTree Investments | Singapore Airlines vs. Samsung Electronics Co | Singapore Airlines vs. MGIC INVESTMENT | Singapore Airlines vs. LPKF Laser Electronics |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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