Correlation Between Singapore Airlines and TYSON FOODS
Can any of the company-specific risk be diversified away by investing in both Singapore Airlines and TYSON FOODS 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 TYSON FOODS 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 TYSON FOODS A , you can compare the effects of market volatilities on Singapore Airlines and TYSON FOODS 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 TYSON FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Airlines and TYSON FOODS.
Diversification Opportunities for Singapore Airlines and TYSON FOODS
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Singapore and TYSON is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Airlines Limited and TYSON FOODS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TYSON FOODS A 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 TYSON FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TYSON FOODS A has no effect on the direction of Singapore Airlines i.e., Singapore Airlines and TYSON FOODS go up and down completely randomly.
Pair Corralation between Singapore Airlines and TYSON FOODS
Assuming the 90 days trading horizon Singapore Airlines Limited is expected to generate 0.74 times more return on investment than TYSON FOODS. However, Singapore Airlines Limited is 1.34 times less risky than TYSON FOODS. It trades about 0.06 of its potential returns per unit of risk. TYSON FOODS A is currently generating about -0.41 per unit of risk. If you would invest 448.00 in Singapore Airlines Limited on October 13, 2024 and sell it today you would earn a total of 4.00 from holding Singapore Airlines Limited or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Singapore Airlines Limited vs. TYSON FOODS A
Performance |
| Timeline |
| Singapore Airlines |
| TYSON FOODS A |
Singapore Airlines and TYSON FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Airlines and TYSON FOODS
The main advantage of trading using opposite Singapore Airlines and TYSON FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Airlines position performs unexpectedly, TYSON FOODS 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 TYSON FOODS will offset losses from the drop in TYSON FOODS's long position.| Singapore Airlines vs. Tyson Foods | Singapore Airlines vs. Nomad Foods | Singapore Airlines vs. Fevertree Drinks PLC | Singapore Airlines vs. National Beverage Corp |
| TYSON FOODS vs. De Grey Mining | TYSON FOODS vs. MINCO SILVER | TYSON FOODS vs. MAG SILVER | TYSON FOODS vs. SENECA FOODS A |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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