Correlation Between Singapore Airlines and Sixt Leasing
Can any of the company-specific risk be diversified away by investing in both Singapore Airlines and Sixt Leasing 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 Sixt Leasing 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 Sixt Leasing SE, you can compare the effects of market volatilities on Singapore Airlines and Sixt Leasing 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 Sixt Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Airlines and Sixt Leasing.
Diversification Opportunities for Singapore Airlines and Sixt Leasing
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Singapore and Sixt is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Airlines Limited and Sixt Leasing SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt Leasing SE 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 Sixt Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt Leasing SE has no effect on the direction of Singapore Airlines i.e., Singapore Airlines and Sixt Leasing go up and down completely randomly.
Pair Corralation between Singapore Airlines and Sixt Leasing
Assuming the 90 days trading horizon Singapore Airlines Limited is expected to generate 0.52 times more return on investment than Sixt Leasing. However, Singapore Airlines Limited is 1.94 times less risky than Sixt Leasing. It trades about -0.01 of its potential returns per unit of risk. Sixt Leasing SE is currently generating about -0.19 per unit of risk. If you would invest 451.00 in Singapore Airlines Limited on October 11, 2024 and sell it today you would lose (1.00) from holding Singapore Airlines Limited or give up 0.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Singapore Airlines Limited vs. Sixt Leasing SE
Performance |
| Timeline |
| Singapore Airlines |
| Sixt Leasing SE |
Singapore Airlines and Sixt Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Airlines and Sixt Leasing
The main advantage of trading using opposite Singapore Airlines and Sixt Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Airlines position performs unexpectedly, Sixt Leasing 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 Sixt Leasing will offset losses from the drop in Sixt Leasing's long position.| Singapore Airlines vs. JLF INVESTMENT | Singapore Airlines vs. Apollo Investment Corp | Singapore Airlines vs. SLR Investment Corp | Singapore Airlines vs. WisdomTree Investments |
| Sixt Leasing vs. SYSTEMAIR AB | Sixt Leasing vs. Entravision Communications | Sixt Leasing vs. FORWARD AIR P | Sixt Leasing vs. Cogent Communications Holdings |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |