Correlation Between Singapore Airlines and SEKISUI CHEMICAL
Can any of the company-specific risk be diversified away by investing in both Singapore Airlines and SEKISUI CHEMICAL 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 SEKISUI CHEMICAL 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 SEKISUI CHEMICAL, you can compare the effects of market volatilities on Singapore Airlines and SEKISUI CHEMICAL 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 SEKISUI CHEMICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Airlines and SEKISUI CHEMICAL.
Diversification Opportunities for Singapore Airlines and SEKISUI CHEMICAL
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Singapore and SEKISUI is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Airlines Limited and SEKISUI CHEMICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEKISUI CHEMICAL 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 SEKISUI CHEMICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEKISUI CHEMICAL has no effect on the direction of Singapore Airlines i.e., Singapore Airlines and SEKISUI CHEMICAL go up and down completely randomly.
Pair Corralation between Singapore Airlines and SEKISUI CHEMICAL
Assuming the 90 days trading horizon Singapore Airlines Limited is expected to generate 0.91 times more return on investment than SEKISUI CHEMICAL. However, Singapore Airlines Limited is 1.1 times less risky than SEKISUI CHEMICAL. It trades about 0.05 of its potential returns per unit of risk. SEKISUI CHEMICAL is currently generating about 0.03 per unit of risk. If you would invest 343.00 in Singapore Airlines Limited on October 12, 2024 and sell it today you would earn a total of 109.00 from holding Singapore Airlines Limited or generate 31.78% 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. SEKISUI CHEMICAL
Performance |
| Timeline |
| Singapore Airlines |
| SEKISUI CHEMICAL |
Singapore Airlines and SEKISUI CHEMICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Airlines and SEKISUI CHEMICAL
The main advantage of trading using opposite Singapore Airlines and SEKISUI CHEMICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Airlines position performs unexpectedly, SEKISUI CHEMICAL 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 SEKISUI CHEMICAL will offset losses from the drop in SEKISUI CHEMICAL's long position.| Singapore Airlines vs. SOLSTAD OFFSHORE NK | Singapore Airlines vs. DELTA AIR LINES | Singapore Airlines vs. SBM OFFSHORE | Singapore Airlines vs. Wizz Air Holdings |
| SEKISUI CHEMICAL vs. ADRIATIC METALS LS 013355 | SEKISUI CHEMICAL vs. Gol Intelligent Airlines | SEKISUI CHEMICAL vs. FIREWEED METALS P | SEKISUI CHEMICAL vs. Singapore Airlines 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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