Correlation Between SINGAPORE AIRLINES and Canon
Can any of the company-specific risk be diversified away by investing in both SINGAPORE AIRLINES and Canon 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 Canon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SINGAPORE AIRLINES and Canon Inc, you can compare the effects of market volatilities on SINGAPORE AIRLINES and Canon 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 Canon. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINGAPORE AIRLINES and Canon.
Diversification Opportunities for SINGAPORE AIRLINES and Canon
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SINGAPORE and Canon is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding SINGAPORE AIRLINES and Canon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canon 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 Canon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canon Inc has no effect on the direction of SINGAPORE AIRLINES i.e., SINGAPORE AIRLINES and Canon go up and down completely randomly.
Pair Corralation between SINGAPORE AIRLINES and Canon
Assuming the 90 days trading horizon SINGAPORE AIRLINES is expected to generate 1.55 times less return on investment than Canon. But when comparing it to its historical volatility, SINGAPORE AIRLINES is 1.59 times less risky than Canon. It trades about 0.06 of its potential returns per unit of risk. Canon Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,912 in Canon Inc on September 4, 2024 and sell it today you would earn a total of 1,088 from holding Canon Inc or generate 56.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SINGAPORE AIRLINES vs. Canon Inc
Performance |
| Timeline |
| SINGAPORE AIRLINES |
| Canon Inc |
SINGAPORE AIRLINES and Canon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINGAPORE AIRLINES and Canon
The main advantage of trading using opposite SINGAPORE AIRLINES and Canon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINGAPORE AIRLINES position performs unexpectedly, Canon 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 Canon will offset losses from the drop in Canon's long position.| SINGAPORE AIRLINES vs. TOTAL GABON | SINGAPORE AIRLINES vs. Walgreens Boots Alliance | SINGAPORE AIRLINES vs. Peak Resources Limited |
| Canon vs. Fukuyama Transporting Co | Canon vs. American Homes 4 | Canon vs. SPORT LISBOA E | Canon vs. USWE SPORTS AB |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |