Correlation Between SINGAPORE AIRLINES and Compagnie Financière
Can any of the company-specific risk be diversified away by investing in both SINGAPORE AIRLINES and Compagnie Financière 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 Compagnie Financière into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SINGAPORE AIRLINES and Compagnie Financire Richemont, you can compare the effects of market volatilities on SINGAPORE AIRLINES and Compagnie Financière 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 Compagnie Financière. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINGAPORE AIRLINES and Compagnie Financière.
Diversification Opportunities for SINGAPORE AIRLINES and Compagnie Financière
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SINGAPORE and Compagnie is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding SINGAPORE AIRLINES and Compagnie Financire Richemont in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie Financière 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 Compagnie Financière. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie Financière has no effect on the direction of SINGAPORE AIRLINES i.e., SINGAPORE AIRLINES and Compagnie Financière go up and down completely randomly.
Pair Corralation between SINGAPORE AIRLINES and Compagnie Financière
Assuming the 90 days trading horizon SINGAPORE AIRLINES is expected to generate 1.39 times less return on investment than Compagnie Financière. But when comparing it to its historical volatility, SINGAPORE AIRLINES is 2.5 times less risky than Compagnie Financière. It trades about 0.08 of its potential returns per unit of risk. Compagnie Financire Richemont is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,267 in Compagnie Financire Richemont on October 14, 2024 and sell it today you would earn a total of 223.00 from holding Compagnie Financire Richemont or generate 17.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SINGAPORE AIRLINES vs. Compagnie Financire Richemont
Performance |
| Timeline |
| SINGAPORE AIRLINES |
| Compagnie Financière |
SINGAPORE AIRLINES and Compagnie Financière Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINGAPORE AIRLINES and Compagnie Financière
The main advantage of trading using opposite SINGAPORE AIRLINES and Compagnie Financière positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINGAPORE AIRLINES position performs unexpectedly, Compagnie Financière 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 Compagnie Financière will offset losses from the drop in Compagnie Financière's long position.| SINGAPORE AIRLINES vs. HYATT HOTELS A | SINGAPORE AIRLINES vs. UPDATE SOFTWARE | SINGAPORE AIRLINES vs. OPERA SOFTWARE | SINGAPORE AIRLINES vs. INTERCONT HOTELS |
| Compagnie Financière vs. SINGAPORE AIRLINES | Compagnie Financière vs. Guidewire Software | Compagnie Financière vs. Magic Software Enterprises | Compagnie Financière vs. United Airlines Holdings |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |