Correlation Between SINGAPORE AIRLINES and Event Hospitality
Can any of the company-specific risk be diversified away by investing in both SINGAPORE AIRLINES and Event Hospitality 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 Event Hospitality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SINGAPORE AIRLINES and Event Hospitality and, you can compare the effects of market volatilities on SINGAPORE AIRLINES and Event Hospitality 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 Event Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINGAPORE AIRLINES and Event Hospitality.
Diversification Opportunities for SINGAPORE AIRLINES and Event Hospitality
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SINGAPORE and Event is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding SINGAPORE AIRLINES and Event Hospitality and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Event Hospitality 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 Event Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Event Hospitality has no effect on the direction of SINGAPORE AIRLINES i.e., SINGAPORE AIRLINES and Event Hospitality go up and down completely randomly.
Pair Corralation between SINGAPORE AIRLINES and Event Hospitality
Assuming the 90 days trading horizon SINGAPORE AIRLINES is expected to generate 3.02 times less return on investment than Event Hospitality. But when comparing it to its historical volatility, SINGAPORE AIRLINES is 1.22 times less risky than Event Hospitality. It trades about 0.06 of its potential returns per unit of risk. Event Hospitality and is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 610.00 in Event Hospitality and on September 12, 2024 and sell it today you would earn a total of 100.00 from holding Event Hospitality and or generate 16.39% 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. Event Hospitality and
Performance |
| Timeline |
| SINGAPORE AIRLINES |
| Event Hospitality |
SINGAPORE AIRLINES and Event Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINGAPORE AIRLINES and Event Hospitality
The main advantage of trading using opposite SINGAPORE AIRLINES and Event Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINGAPORE AIRLINES position performs unexpectedly, Event Hospitality 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 Event Hospitality will offset losses from the drop in Event Hospitality's long position.| SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Apple Inc |
| Event Hospitality vs. SBA Communications Corp | Event Hospitality vs. Singapore Airlines Limited | Event Hospitality vs. WillScot Mobile Mini | Event Hospitality vs. MTI WIRELESS EDGE |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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