Correlation Between SINGAPORE AIRLINES and T MOBILE
Can any of the company-specific risk be diversified away by investing in both SINGAPORE AIRLINES and T MOBILE 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 T MOBILE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SINGAPORE AIRLINES and T MOBILE INCDL 00001, you can compare the effects of market volatilities on SINGAPORE AIRLINES and T MOBILE 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 T MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINGAPORE AIRLINES and T MOBILE.
Diversification Opportunities for SINGAPORE AIRLINES and T MOBILE
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SINGAPORE and TM5 is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding SINGAPORE AIRLINES and T MOBILE INCDL 00001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T MOBILE INCDL 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 T MOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T MOBILE INCDL has no effect on the direction of SINGAPORE AIRLINES i.e., SINGAPORE AIRLINES and T MOBILE go up and down completely randomly.
Pair Corralation between SINGAPORE AIRLINES and T MOBILE
Assuming the 90 days trading horizon SINGAPORE AIRLINES is expected to generate 0.72 times more return on investment than T MOBILE. However, SINGAPORE AIRLINES is 1.39 times less risky than T MOBILE. It trades about 0.3 of its potential returns per unit of risk. T MOBILE INCDL 00001 is currently generating about 0.01 per unit of risk. If you would invest 428.00 in SINGAPORE AIRLINES on September 12, 2024 and sell it today you would earn a total of 26.00 from holding SINGAPORE AIRLINES or generate 6.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SINGAPORE AIRLINES vs. T MOBILE INCDL 00001
Performance |
| Timeline |
| SINGAPORE AIRLINES |
| T MOBILE INCDL |
SINGAPORE AIRLINES and T MOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINGAPORE AIRLINES and T MOBILE
The main advantage of trading using opposite SINGAPORE AIRLINES and T MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINGAPORE AIRLINES position performs unexpectedly, T MOBILE 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 T MOBILE will offset losses from the drop in T MOBILE's long position.| SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Apple Inc |
| T MOBILE vs. VARIOUS EATERIES LS | T MOBILE vs. Hemisphere Energy Corp | T MOBILE vs. Darden Restaurants | T MOBILE vs. Ribbon Communications |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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