Correlation Between Singapore Airlines and Fuji Media
Can any of the company-specific risk be diversified away by investing in both Singapore Airlines and Fuji Media 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 Fuji Media 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 Fuji Media Holdings, you can compare the effects of market volatilities on Singapore Airlines and Fuji Media 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 Fuji Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Airlines and Fuji Media.
Diversification Opportunities for Singapore Airlines and Fuji Media
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Singapore and Fuji is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Airlines Limited and Fuji Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuji Media Holdings 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 Fuji Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuji Media Holdings has no effect on the direction of Singapore Airlines i.e., Singapore Airlines and Fuji Media go up and down completely randomly.
Pair Corralation between Singapore Airlines and Fuji Media
Assuming the 90 days trading horizon Singapore Airlines Limited is expected to generate 0.41 times more return on investment than Fuji Media. However, Singapore Airlines Limited is 2.43 times less risky than Fuji Media. It trades about -0.03 of its potential returns per unit of risk. Fuji Media Holdings is currently generating about -0.16 per unit of risk. If you would invest 445.00 in Singapore Airlines Limited on October 21, 2024 and sell it today you would lose (3.00) from holding Singapore Airlines Limited or give up 0.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Airlines Limited vs. Fuji Media Holdings
Performance |
| Timeline |
| Singapore Airlines |
| Fuji Media Holdings |
Singapore Airlines and Fuji Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Airlines and Fuji Media
The main advantage of trading using opposite Singapore Airlines and Fuji Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Airlines position performs unexpectedly, Fuji Media 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 Fuji Media will offset losses from the drop in Fuji Media's long position.| Singapore Airlines vs. SPORTING | Singapore Airlines vs. Air Transport Services | Singapore Airlines vs. PARKEN Sport Entertainment | Singapore Airlines vs. CarsalesCom |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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