Correlation Between SINGAPORE AIRLINES and Tower One
Can any of the company-specific risk be diversified away by investing in both SINGAPORE AIRLINES and Tower One 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 Tower One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SINGAPORE AIRLINES and Tower One Wireless, you can compare the effects of market volatilities on SINGAPORE AIRLINES and Tower One 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 Tower One. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINGAPORE AIRLINES and Tower One.
Diversification Opportunities for SINGAPORE AIRLINES and Tower One
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SINGAPORE and Tower is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SINGAPORE AIRLINES and Tower One Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tower One Wireless 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 are associated (or correlated) with Tower One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tower One Wireless has no effect on the direction of SINGAPORE AIRLINES i.e., SINGAPORE AIRLINES and Tower One go up and down completely randomly.
Pair Corralation between SINGAPORE AIRLINES and Tower One
Assuming the 90 days trading horizon SINGAPORE AIRLINES is expected to generate 0.43 times more return on investment than Tower One. However, SINGAPORE AIRLINES is 2.32 times less risky than Tower One. It trades about 0.05 of its potential returns per unit of risk. Tower One Wireless is currently generating about -0.01 per unit of risk. If you would invest 323.00 in SINGAPORE AIRLINES on September 3, 2024 and sell it today you would earn a total of 117.00 from holding SINGAPORE AIRLINES or generate 36.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
SINGAPORE AIRLINES vs. Tower One Wireless
Performance |
| Timeline |
| SINGAPORE AIRLINES |
| Tower One Wireless |
SINGAPORE AIRLINES and Tower One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINGAPORE AIRLINES and Tower One
The main advantage of trading using opposite SINGAPORE AIRLINES and Tower One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINGAPORE AIRLINES position performs unexpectedly, Tower One 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 Tower One will offset losses from the drop in Tower One's long position.| SINGAPORE AIRLINES vs. REVO INSURANCE SPA | SINGAPORE AIRLINES vs. ALBIS LEASING AG | SINGAPORE AIRLINES vs. Evolution Mining Limited | SINGAPORE AIRLINES vs. PT Bank Maybank |
| Tower One vs. SLR Investment Corp | Tower One vs. Japan Asia Investment | Tower One vs. Data3 Limited | Tower One vs. Hyrican Informationssysteme Aktiengesellschaft |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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