Correlation Between SINGAPORE AIRLINES and Apple
Can any of the company-specific risk be diversified away by investing in both SINGAPORE AIRLINES and Apple 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 Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SINGAPORE AIRLINES and Apple Inc, you can compare the effects of market volatilities on SINGAPORE AIRLINES and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINGAPORE AIRLINES and Apple.
Diversification Opportunities for SINGAPORE AIRLINES and Apple
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SINGAPORE and Apple is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding SINGAPORE AIRLINES and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of SINGAPORE AIRLINES i.e., SINGAPORE AIRLINES and Apple go up and down completely randomly.
Pair Corralation between SINGAPORE AIRLINES and Apple
Assuming the 90 days trading horizon SINGAPORE AIRLINES is expected to under-perform the Apple. In addition to that, SINGAPORE AIRLINES is 1.14 times more volatile than Apple Inc. It trades about -0.06 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.02 per unit of volatility. If you would invest 23,530 in Apple Inc on October 11, 2024 and sell it today you would earn a total of 50.00 from holding Apple Inc or generate 0.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SINGAPORE AIRLINES vs. Apple Inc
Performance |
| Timeline |
| SINGAPORE AIRLINES |
| Apple Inc |
SINGAPORE AIRLINES and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINGAPORE AIRLINES and Apple
The main advantage of trading using opposite SINGAPORE AIRLINES and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINGAPORE AIRLINES position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple'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 |
| Apple vs. SINGAPORE AIRLINES | Apple vs. Direct Line Insurance | Apple vs. REVO INSURANCE SPA | Apple vs. Nok Airlines PCL |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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