Correlation Between SINGAPORE AIRLINES and Western Copper
Can any of the company-specific risk be diversified away by investing in both SINGAPORE AIRLINES and Western Copper 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 Western Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SINGAPORE AIRLINES and Western Copper and, you can compare the effects of market volatilities on SINGAPORE AIRLINES and Western Copper 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 Western Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINGAPORE AIRLINES and Western Copper.
Diversification Opportunities for SINGAPORE AIRLINES and Western Copper
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between SINGAPORE and Western is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding SINGAPORE AIRLINES and Western Copper and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Copper 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 Western Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Copper has no effect on the direction of SINGAPORE AIRLINES i.e., SINGAPORE AIRLINES and Western Copper go up and down completely randomly.
Pair Corralation between SINGAPORE AIRLINES and Western Copper
Assuming the 90 days trading horizon SINGAPORE AIRLINES is expected to generate 2.94 times less return on investment than Western Copper. But when comparing it to its historical volatility, SINGAPORE AIRLINES is 3.76 times less risky than Western Copper. It trades about 0.11 of its potential returns per unit of risk. Western Copper and is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 101.00 in Western Copper and on October 9, 2024 and sell it today you would earn a total of 3.00 from holding Western Copper and or generate 2.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SINGAPORE AIRLINES vs. Western Copper and
Performance |
| Timeline |
| SINGAPORE AIRLINES |
| Western Copper |
SINGAPORE AIRLINES and Western Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINGAPORE AIRLINES and Western Copper
The main advantage of trading using opposite SINGAPORE AIRLINES and Western Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINGAPORE AIRLINES position performs unexpectedly, Western Copper 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 Western Copper will offset losses from the drop in Western Copper's long position.| SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Apple Inc |
| Western Copper vs. Alfa Financial Software | Western Copper vs. USU Software AG | Western Copper vs. Constellation Software | Western Copper vs. QURATE RETAIL INC |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |