Correlation Between Singapore Airlines and Trend Micro
Can any of the company-specific risk be diversified away by investing in both Singapore Airlines and Trend Micro 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 Trend Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singapore Airlines and Trend Micro, you can compare the effects of market volatilities on Singapore Airlines and Trend Micro 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 Trend Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Airlines and Trend Micro.
Diversification Opportunities for Singapore Airlines and Trend Micro
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Singapore and Trend is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Airlines and Trend Micro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trend Micro 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 Trend Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trend Micro has no effect on the direction of Singapore Airlines i.e., Singapore Airlines and Trend Micro go up and down completely randomly.
Pair Corralation between Singapore Airlines and Trend Micro
If you would invest 5,760 in Trend Micro on October 25, 2024 and sell it today you would earn a total of 0.00 from holding Trend Micro or generate 0.0% 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. Trend Micro
Performance |
| Timeline |
| Singapore Airlines |
| Trend Micro |
Singapore Airlines and Trend Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Airlines and Trend Micro
The main advantage of trading using opposite Singapore Airlines and Trend Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Airlines position performs unexpectedly, Trend Micro 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 Trend Micro will offset losses from the drop in Trend Micro's long position.| Singapore Airlines vs. Cathay Pacific Airways | Singapore Airlines vs. Qantas Airways Ltd | Singapore Airlines vs. International Consolidated Airlines | Singapore Airlines vs. Singapore Airlines |
| Trend Micro vs. Perseus Mining Limited | Trend Micro vs. Aluminum of | Trend Micro vs. Copperbank Resources Corp | Trend Micro vs. TFI International |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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