Correlation Between Singhe Hospitals and ACL Cables
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By analyzing existing cross correlation between Singhe Hospitals and ACL Cables PLC, you can compare the effects of market volatilities on Singhe Hospitals and ACL Cables 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 Singhe Hospitals with a short position of ACL Cables. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singhe Hospitals and ACL Cables.
Diversification Opportunities for Singhe Hospitals and ACL Cables
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Singhe and ACL is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Singhe Hospitals and ACL Cables PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACL Cables PLC and Singhe Hospitals 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 Singhe Hospitals are associated (or correlated) with ACL Cables. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACL Cables PLC has no effect on the direction of Singhe Hospitals i.e., Singhe Hospitals and ACL Cables go up and down completely randomly.
Pair Corralation between Singhe Hospitals and ACL Cables
Assuming the 90 days trading horizon Singhe Hospitals is expected to generate 2.81 times less return on investment than ACL Cables. In addition to that, Singhe Hospitals is 2.43 times more volatile than ACL Cables PLC. It trades about 0.01 of its total potential returns per unit of risk. ACL Cables PLC is currently generating about 0.1 per unit of volatility. If you would invest 7,220 in ACL Cables PLC on September 4, 2024 and sell it today you would earn a total of 2,240 from holding ACL Cables PLC or generate 31.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.57% |
| Values | Daily Returns |
Singhe Hospitals vs. ACL Cables PLC
Performance |
| Timeline |
| Singhe Hospitals |
| ACL Cables PLC |
Singhe Hospitals and ACL Cables Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singhe Hospitals and ACL Cables
The main advantage of trading using opposite Singhe Hospitals and ACL Cables positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singhe Hospitals position performs unexpectedly, ACL Cables 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 ACL Cables will offset losses from the drop in ACL Cables' long position.| Singhe Hospitals vs. Carson Cumberbatch PLC | Singhe Hospitals vs. Nations Trust Bank | Singhe Hospitals vs. Distilleries Company of |
| ACL Cables vs. Carson Cumberbatch PLC | ACL Cables vs. Nations Trust Bank | ACL Cables vs. Distilleries Company of |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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