Correlation Between Singapore Airlines and WT OFFSHORE
Can any of the company-specific risk be diversified away by investing in both Singapore Airlines and WT OFFSHORE 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 WT OFFSHORE 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 WT OFFSHORE, you can compare the effects of market volatilities on Singapore Airlines and WT OFFSHORE 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 WT OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Airlines and WT OFFSHORE.
Diversification Opportunities for Singapore Airlines and WT OFFSHORE
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Singapore and UWV is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Airlines Limited and WT OFFSHORE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WT OFFSHORE 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 WT OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WT OFFSHORE has no effect on the direction of Singapore Airlines i.e., Singapore Airlines and WT OFFSHORE go up and down completely randomly.
Pair Corralation between Singapore Airlines and WT OFFSHORE
Assuming the 90 days trading horizon Singapore Airlines Limited is expected to generate 0.43 times more return on investment than WT OFFSHORE. However, Singapore Airlines Limited is 2.35 times less risky than WT OFFSHORE. It trades about 0.05 of its potential returns per unit of risk. WT OFFSHORE is currently generating about -0.06 per unit of risk. If you would invest 339.00 in Singapore Airlines Limited on October 11, 2024 and sell it today you would earn a total of 116.00 from holding Singapore Airlines Limited or generate 34.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Airlines Limited vs. WT OFFSHORE
Performance |
| Timeline |
| Singapore Airlines |
| WT OFFSHORE |
Singapore Airlines and WT OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Airlines and WT OFFSHORE
The main advantage of trading using opposite Singapore Airlines and WT OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Airlines position performs unexpectedly, WT OFFSHORE 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 WT OFFSHORE will offset losses from the drop in WT OFFSHORE's long position.| Singapore Airlines vs. PREMIER FOODS | Singapore Airlines vs. Ebro Foods SA | Singapore Airlines vs. Performance Food Group | Singapore Airlines vs. Astral Foods Limited |
| WT OFFSHORE vs. SEI INVESTMENTS | WT OFFSHORE vs. Singapore Airlines Limited | WT OFFSHORE vs. JLF INVESTMENT | WT OFFSHORE vs. AEGEAN 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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