Correlation Between SINGAPORE AIRLINES and NURAN WIRELESS
Can any of the company-specific risk be diversified away by investing in both SINGAPORE AIRLINES and NURAN WIRELESS 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 NURAN WIRELESS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SINGAPORE AIRLINES and NURAN WIRELESS INC, you can compare the effects of market volatilities on SINGAPORE AIRLINES and NURAN WIRELESS 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 NURAN WIRELESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINGAPORE AIRLINES and NURAN WIRELESS.
Diversification Opportunities for SINGAPORE AIRLINES and NURAN WIRELESS
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SINGAPORE and NURAN is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding SINGAPORE AIRLINES and NURAN WIRELESS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NURAN WIRELESS INC 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 NURAN WIRELESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NURAN WIRELESS INC has no effect on the direction of SINGAPORE AIRLINES i.e., SINGAPORE AIRLINES and NURAN WIRELESS go up and down completely randomly.
Pair Corralation between SINGAPORE AIRLINES and NURAN WIRELESS
Assuming the 90 days trading horizon SINGAPORE AIRLINES is expected to generate 0.35 times more return on investment than NURAN WIRELESS. However, SINGAPORE AIRLINES is 2.85 times less risky than NURAN WIRELESS. It trades about 0.07 of its potential returns per unit of risk. NURAN WIRELESS INC is currently generating about -0.12 per unit of risk. If you would invest 436.00 in SINGAPORE AIRLINES on August 31, 2024 and sell it today you would earn a total of 7.00 from holding SINGAPORE AIRLINES or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SINGAPORE AIRLINES vs. NURAN WIRELESS INC
Performance |
| Timeline |
| SINGAPORE AIRLINES |
| NURAN WIRELESS INC |
SINGAPORE AIRLINES and NURAN WIRELESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINGAPORE AIRLINES and NURAN WIRELESS
The main advantage of trading using opposite SINGAPORE AIRLINES and NURAN WIRELESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINGAPORE AIRLINES position performs unexpectedly, NURAN WIRELESS 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 NURAN WIRELESS will offset losses from the drop in NURAN WIRELESS's long position.| SINGAPORE AIRLINES vs. Fair Isaac Corp | SINGAPORE AIRLINES vs. Air New Zealand | SINGAPORE AIRLINES vs. NTG Nordic Transport | SINGAPORE AIRLINES vs. Texas Roadhouse |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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