Correlation Between Singapore Airlines and Nucletron Electronic
Can any of the company-specific risk be diversified away by investing in both Singapore Airlines and Nucletron Electronic 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 Nucletron Electronic 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 Nucletron Electronic Aktiengesellschaft, you can compare the effects of market volatilities on Singapore Airlines and Nucletron Electronic 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 Nucletron Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Airlines and Nucletron Electronic.
Diversification Opportunities for Singapore Airlines and Nucletron Electronic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Singapore and Nucletron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Airlines Limited and Nucletron Electronic Aktienges in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nucletron Electronic 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 Nucletron Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nucletron Electronic has no effect on the direction of Singapore Airlines i.e., Singapore Airlines and Nucletron Electronic go up and down completely randomly.
Pair Corralation between Singapore Airlines and Nucletron Electronic
Assuming the 90 days trading horizon Singapore Airlines Limited is expected to generate 3.01 times more return on investment than Nucletron Electronic. However, Singapore Airlines is 3.01 times more volatile than Nucletron Electronic Aktiengesellschaft. It trades about 0.05 of its potential returns per unit of risk. Nucletron Electronic Aktiengesellschaft is currently generating about 0.08 per unit of risk. If you would invest 419.00 in Singapore Airlines Limited on October 17, 2024 and sell it today you would earn a total of 31.00 from holding Singapore Airlines Limited or generate 7.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.31% |
| Values | Daily Returns |
Singapore Airlines Limited vs. Nucletron Electronic Aktienges
Performance |
| Timeline |
| Singapore Airlines |
| Nucletron Electronic |
Singapore Airlines and Nucletron Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Airlines and Nucletron Electronic
The main advantage of trading using opposite Singapore Airlines and Nucletron Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Airlines position performs unexpectedly, Nucletron Electronic 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 Nucletron Electronic will offset losses from the drop in Nucletron Electronic's long position.| Singapore Airlines vs. CRISPR Therapeutics AG | Singapore Airlines vs. InterContinental Hotels Group | Singapore Airlines vs. Hyatt Hotels | Singapore Airlines vs. Singapore Telecommunications Limited |
| Nucletron Electronic vs. Singapore Airlines Limited | Nucletron Electronic vs. Nexstar Media Group | Nucletron Electronic vs. AEGEAN AIRLINES | Nucletron Electronic vs. Gol Intelligent 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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