Correlation Between Singapore Airlines and OFFICE DEPOT
Can any of the company-specific risk be diversified away by investing in both Singapore Airlines and OFFICE DEPOT 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 OFFICE DEPOT 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 OFFICE DEPOT, you can compare the effects of market volatilities on Singapore Airlines and OFFICE DEPOT 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 OFFICE DEPOT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Airlines and OFFICE DEPOT.
Diversification Opportunities for Singapore Airlines and OFFICE DEPOT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Singapore and OFFICE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Airlines Limited and OFFICE DEPOT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFFICE DEPOT 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 OFFICE DEPOT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFFICE DEPOT has no effect on the direction of Singapore Airlines i.e., Singapore Airlines and OFFICE DEPOT go up and down completely randomly.
Pair Corralation between Singapore Airlines and OFFICE DEPOT
If you would invest 396.00 in Singapore Airlines Limited on September 4, 2024 and sell it today you would earn a total of 46.00 from holding Singapore Airlines Limited or generate 11.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Airlines Limited vs. OFFICE DEPOT
Performance |
| Timeline |
| Singapore Airlines |
| OFFICE DEPOT |
Singapore Airlines and OFFICE DEPOT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Airlines and OFFICE DEPOT
The main advantage of trading using opposite Singapore Airlines and OFFICE DEPOT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Airlines position performs unexpectedly, OFFICE DEPOT 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 OFFICE DEPOT will offset losses from the drop in OFFICE DEPOT'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 |
| OFFICE DEPOT vs. TOTAL GABON | OFFICE DEPOT vs. Walgreens Boots Alliance | OFFICE DEPOT vs. Peak Resources Limited |
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.
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