Correlation Between SINGAPORE AIRLINES and Gaming
Can any of the company-specific risk be diversified away by investing in both SINGAPORE AIRLINES and Gaming 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 Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SINGAPORE AIRLINES and Gaming and Leisure, you can compare the effects of market volatilities on SINGAPORE AIRLINES and Gaming 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 Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINGAPORE AIRLINES and Gaming.
Diversification Opportunities for SINGAPORE AIRLINES and Gaming
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SINGAPORE and Gaming is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding SINGAPORE AIRLINES and Gaming and Leisure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaming and Leisure 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 Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaming and Leisure has no effect on the direction of SINGAPORE AIRLINES i.e., SINGAPORE AIRLINES and Gaming go up and down completely randomly.
Pair Corralation between SINGAPORE AIRLINES and Gaming
Assuming the 90 days trading horizon SINGAPORE AIRLINES is expected to generate 1.02 times more return on investment than Gaming. However, SINGAPORE AIRLINES is 1.02 times more volatile than Gaming and Leisure. It trades about 0.05 of its potential returns per unit of risk. Gaming and Leisure is currently generating about 0.02 per unit of risk. If you would invest 340.00 in SINGAPORE AIRLINES on November 1, 2024 and sell it today you would earn a total of 102.00 from holding SINGAPORE AIRLINES or generate 30.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SINGAPORE AIRLINES vs. Gaming and Leisure
Performance |
| Timeline |
| SINGAPORE AIRLINES |
| Gaming and Leisure |
SINGAPORE AIRLINES and Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINGAPORE AIRLINES and Gaming
The main advantage of trading using opposite SINGAPORE AIRLINES and Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINGAPORE AIRLINES position performs unexpectedly, Gaming 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 Gaming will offset losses from the drop in Gaming's long position.| SINGAPORE AIRLINES vs. EPSILON HEALTHCARE LTD | SINGAPORE AIRLINES vs. Yuexiu Transport Infrastructure | SINGAPORE AIRLINES vs. Columbia Sportswear | SINGAPORE AIRLINES vs. WESANA HEALTH HOLD |
| Gaming vs. Applied Materials | Gaming vs. STORE ELECTRONIC | Gaming vs. VULCAN MATERIALS | Gaming vs. Meiko Electronics Co |
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 Stocks Directory module to find actively traded stocks across global markets.
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