Correlation Between SINGAPORE AIRLINES and MSCI
Can any of the company-specific risk be diversified away by investing in both SINGAPORE AIRLINES and MSCI 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 MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SINGAPORE AIRLINES and MSCI Inc, you can compare the effects of market volatilities on SINGAPORE AIRLINES and MSCI 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 MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINGAPORE AIRLINES and MSCI.
Diversification Opportunities for SINGAPORE AIRLINES and MSCI
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between SINGAPORE and MSCI is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding SINGAPORE AIRLINES and MSCI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MSCI 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 MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MSCI Inc has no effect on the direction of SINGAPORE AIRLINES i.e., SINGAPORE AIRLINES and MSCI go up and down completely randomly.
Pair Corralation between SINGAPORE AIRLINES and MSCI
Assuming the 90 days trading horizon SINGAPORE AIRLINES is expected to generate 1.22 times less return on investment than MSCI. But when comparing it to its historical volatility, SINGAPORE AIRLINES is 1.15 times less risky than MSCI. It trades about 0.23 of its potential returns per unit of risk. MSCI Inc is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 56,543 in MSCI Inc on September 13, 2024 and sell it today you would earn a total of 3,557 from holding MSCI Inc or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SINGAPORE AIRLINES vs. MSCI Inc
Performance |
| Timeline |
| SINGAPORE AIRLINES |
| MSCI Inc |
SINGAPORE AIRLINES and MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINGAPORE AIRLINES and MSCI
The main advantage of trading using opposite SINGAPORE AIRLINES and MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINGAPORE AIRLINES position performs unexpectedly, MSCI 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 MSCI will offset losses from the drop in MSCI's long position.| SINGAPORE AIRLINES vs. Ramsay Health Care | SINGAPORE AIRLINES vs. FEMALE HEALTH | SINGAPORE AIRLINES vs. GUARDANT HEALTH CL | SINGAPORE AIRLINES vs. American Eagle Outfitters |
| MSCI vs. JD SPORTS FASH | MSCI vs. MIRAMAR HOTEL INV | MSCI vs. Sunstone Hotel Investors | MSCI vs. PLAYTIKA HOLDING DL 01 |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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