Correlation Between Singapore Airlines and SDAX Index
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By analyzing existing cross correlation between Singapore Airlines Limited and SDAX Index, you can compare the effects of market volatilities on Singapore Airlines and SDAX Index 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 SDAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Airlines and SDAX Index.
Diversification Opportunities for Singapore Airlines and SDAX Index
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Singapore and SDAX is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Airlines Limited and SDAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SDAX Index 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 SDAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SDAX Index has no effect on the direction of Singapore Airlines i.e., Singapore Airlines and SDAX Index go up and down completely randomly.
Pair Corralation between Singapore Airlines and SDAX Index
Assuming the 90 days trading horizon Singapore Airlines Limited is expected to under-perform the SDAX Index. In addition to that, Singapore Airlines is 1.13 times more volatile than SDAX Index. It trades about -0.09 of its total potential returns per unit of risk. SDAX Index is currently generating about 0.19 per unit of volatility. If you would invest 1,372,206 in SDAX Index on October 25, 2024 and sell it today you would earn a total of 39,843 from holding SDAX Index or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Singapore Airlines Limited vs. SDAX Index
Performance |
| Timeline |
Singapore Airlines and SDAX Index Volatility Contrast
Predicted Return Density |
| Returns |
Singapore Airlines Limited
Pair trading matchups for Singapore Airlines
SDAX Index
Pair trading matchups for SDAX Index
Pair Trading with Singapore Airlines and SDAX Index
The main advantage of trading using opposite Singapore Airlines and SDAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Airlines position performs unexpectedly, SDAX Index 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 SDAX Index will offset losses from the drop in SDAX Index's long position.| Singapore Airlines vs. Minerals Technologies | Singapore Airlines vs. Direct Line Insurance | Singapore Airlines vs. United Insurance Holdings | Singapore Airlines vs. Erste Group Bank |
| SDAX Index vs. PURETECH HEALTH PLC | SDAX Index vs. China Eastern Airlines | SDAX Index vs. Singapore Airlines Limited | SDAX Index vs. Aegean Airlines SA |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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