Correlation Between SINGAPORE AIRLINES and Alstria Office
Can any of the company-specific risk be diversified away by investing in both SINGAPORE AIRLINES and Alstria Office 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 Alstria Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SINGAPORE AIRLINES and alstria office REIT AG, you can compare the effects of market volatilities on SINGAPORE AIRLINES and Alstria Office 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 Alstria Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINGAPORE AIRLINES and Alstria Office.
Diversification Opportunities for SINGAPORE AIRLINES and Alstria Office
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SINGAPORE and Alstria is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding SINGAPORE AIRLINES and alstria office REIT AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on alstria office REIT 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 Alstria Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of alstria office REIT has no effect on the direction of SINGAPORE AIRLINES i.e., SINGAPORE AIRLINES and Alstria Office go up and down completely randomly.
Pair Corralation between SINGAPORE AIRLINES and Alstria Office
Assuming the 90 days trading horizon SINGAPORE AIRLINES is expected to generate 0.09 times more return on investment than Alstria Office. However, SINGAPORE AIRLINES is 10.84 times less risky than Alstria Office. It trades about 0.0 of its potential returns per unit of risk. alstria office REIT AG is currently generating about -0.22 per unit of risk. If you would invest 454.00 in SINGAPORE AIRLINES on October 11, 2024 and sell it today you would earn a total of 0.00 from holding SINGAPORE AIRLINES or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SINGAPORE AIRLINES vs. alstria office REIT AG
Performance |
| Timeline |
| SINGAPORE AIRLINES |
| alstria office REIT |
SINGAPORE AIRLINES and Alstria Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINGAPORE AIRLINES and Alstria Office
The main advantage of trading using opposite SINGAPORE AIRLINES and Alstria Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINGAPORE AIRLINES position performs unexpectedly, Alstria Office 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 Alstria Office will offset losses from the drop in Alstria Office's long position.| SINGAPORE AIRLINES vs. Titan Machinery | SINGAPORE AIRLINES vs. Nufarm Limited | SINGAPORE AIRLINES vs. Endeavour Mining PLC | SINGAPORE AIRLINES vs. WIMFARM SA EO |
| Alstria Office vs. Canadian Utilities Limited | Alstria Office vs. Algonquin Power Utilities | Alstria Office vs. UNITED RENTALS | Alstria Office vs. United Breweries 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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