Correlation Between Singapore Airlines and Hemisphere Energy
Can any of the company-specific risk be diversified away by investing in both Singapore Airlines and Hemisphere Energy 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 Hemisphere Energy 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 Hemisphere Energy Corp, you can compare the effects of market volatilities on Singapore Airlines and Hemisphere Energy 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 Hemisphere Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Airlines and Hemisphere Energy.
Diversification Opportunities for Singapore Airlines and Hemisphere Energy
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Singapore and Hemisphere is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Airlines Limited and Hemisphere Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hemisphere Energy 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 Hemisphere Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hemisphere Energy Corp has no effect on the direction of Singapore Airlines i.e., Singapore Airlines and Hemisphere Energy go up and down completely randomly.
Pair Corralation between Singapore Airlines and Hemisphere Energy
Assuming the 90 days trading horizon Singapore Airlines is expected to generate 1.08 times less return on investment than Hemisphere Energy. But when comparing it to its historical volatility, Singapore Airlines Limited is 1.42 times less risky than Hemisphere Energy. It trades about 0.07 of its potential returns per unit of risk. Hemisphere Energy Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 122.00 in Hemisphere Energy Corp on September 4, 2024 and sell it today you would earn a total of 2.00 from holding Hemisphere Energy Corp or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Airlines Limited vs. Hemisphere Energy Corp
Performance |
| Timeline |
| Singapore Airlines |
| Hemisphere Energy Corp |
Singapore Airlines and Hemisphere Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Airlines and Hemisphere Energy
The main advantage of trading using opposite Singapore Airlines and Hemisphere Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Airlines position performs unexpectedly, Hemisphere Energy 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 Hemisphere Energy will offset losses from the drop in Hemisphere Energy's long position.| Singapore Airlines vs. Delta Air Lines | Singapore Airlines vs. AIR CHINA LTD | Singapore Airlines vs. RYANAIR HLDGS ADR | Singapore Airlines vs. Southwest Airlines Co |
| Hemisphere Energy vs. MGIC INVESTMENT | Hemisphere Energy vs. Singapore Airlines Limited | Hemisphere Energy vs. PennantPark Investment | Hemisphere Energy vs. AEGEAN AIRLINES |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |