Correlation Between Singapore Airlines and G III
Can any of the company-specific risk be diversified away by investing in both Singapore Airlines and G III 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 G III 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 G III Apparel Group, you can compare the effects of market volatilities on Singapore Airlines and G III 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 G III. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Airlines and G III.
Diversification Opportunities for Singapore Airlines and G III
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Singapore and GI4 is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Airlines Limited and G III Apparel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G III Apparel 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 G III. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G III Apparel has no effect on the direction of Singapore Airlines i.e., Singapore Airlines and G III go up and down completely randomly.
Pair Corralation between Singapore Airlines and G III
Assuming the 90 days trading horizon Singapore Airlines Limited is expected to generate 0.39 times more return on investment than G III. However, Singapore Airlines Limited is 2.54 times less risky than G III. It trades about -0.03 of its potential returns per unit of risk. G III Apparel Group is currently generating about -0.16 per unit of risk. If you would invest 450.00 in Singapore Airlines Limited on November 8, 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 | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Singapore Airlines Limited vs. G III Apparel Group
Performance |
| Timeline |
| Singapore Airlines |
| G III Apparel |
Singapore Airlines and G III Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Airlines and G III
The main advantage of trading using opposite Singapore Airlines and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Airlines position performs unexpectedly, G III 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 G III will offset losses from the drop in G III'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 |
| G III vs. MARKET VECTR RETAIL | G III vs. TRADELINK ELECTRON | G III vs. CANON MARKETING JP | G III vs. Meta Financial Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stocks Directory Find actively traded stocks across global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |