Correlation Between SINGAPORE AIRLINES and OAKTRSPECLENDNEW
Can any of the company-specific risk be diversified away by investing in both SINGAPORE AIRLINES and OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SINGAPORE AIRLINES and OAKTRSPECLENDNEW, you can compare the effects of market volatilities on SINGAPORE AIRLINES and OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINGAPORE AIRLINES and OAKTRSPECLENDNEW.
Diversification Opportunities for SINGAPORE AIRLINES and OAKTRSPECLENDNEW
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SINGAPORE and OAKTRSPECLENDNEW is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SINGAPORE AIRLINES and OAKTRSPECLENDNEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OAKTRSPECLENDNEW has no effect on the direction of SINGAPORE AIRLINES i.e., SINGAPORE AIRLINES and OAKTRSPECLENDNEW go up and down completely randomly.
Pair Corralation between SINGAPORE AIRLINES and OAKTRSPECLENDNEW
Assuming the 90 days trading horizon SINGAPORE AIRLINES is expected to generate 0.9 times more return on investment than OAKTRSPECLENDNEW. However, SINGAPORE AIRLINES is 1.11 times less risky than OAKTRSPECLENDNEW. It trades about 0.04 of its potential returns per unit of risk. OAKTRSPECLENDNEW is currently generating about -0.01 per unit of risk. If you would invest 392.00 in SINGAPORE AIRLINES on September 2, 2024 and sell it today you would earn a total of 48.00 from holding SINGAPORE AIRLINES or generate 12.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SINGAPORE AIRLINES vs. OAKTRSPECLENDNEW
Performance |
| Timeline |
| SINGAPORE AIRLINES |
| OAKTRSPECLENDNEW |
SINGAPORE AIRLINES and OAKTRSPECLENDNEW Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINGAPORE AIRLINES and OAKTRSPECLENDNEW
The main advantage of trading using opposite SINGAPORE AIRLINES and OAKTRSPECLENDNEW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINGAPORE AIRLINES position performs unexpectedly, OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW will offset losses from the drop in OAKTRSPECLENDNEW's long position.| SINGAPORE AIRLINES vs. SIVERS SEMICONDUCTORS AB | SINGAPORE AIRLINES vs. Darden Restaurants | SINGAPORE AIRLINES vs. Reliance Steel Aluminum | SINGAPORE AIRLINES vs. Q2M Managementberatung AG |
| OAKTRSPECLENDNEW vs. TERADATA | OAKTRSPECLENDNEW vs. Air Transport Services | OAKTRSPECLENDNEW vs. MICRONIC MYDATA | OAKTRSPECLENDNEW vs. KAUFMAN ET BROAD |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets |