Correlation Between Singapore Telecommunicatio and LASSONDE INDUSTINC
Can any of the company-specific risk be diversified away by investing in both Singapore Telecommunicatio and LASSONDE INDUSTINC 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 Telecommunicatio and LASSONDE INDUSTINC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singapore Telecommunications Limited and LASSONDE INDUSTINC A, you can compare the effects of market volatilities on Singapore Telecommunicatio and LASSONDE INDUSTINC 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 Telecommunicatio with a short position of LASSONDE INDUSTINC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Telecommunicatio and LASSONDE INDUSTINC.
Diversification Opportunities for Singapore Telecommunicatio and LASSONDE INDUSTINC
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Singapore and LASSONDE is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Telecommunications L and LASSONDE INDUSTINC A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LASSONDE INDUSTINC and Singapore Telecommunicatio 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 Telecommunications Limited are associated (or correlated) with LASSONDE INDUSTINC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LASSONDE INDUSTINC has no effect on the direction of Singapore Telecommunicatio i.e., Singapore Telecommunicatio and LASSONDE INDUSTINC go up and down completely randomly.
Pair Corralation between Singapore Telecommunicatio and LASSONDE INDUSTINC
Assuming the 90 days trading horizon Singapore Telecommunications Limited is expected to generate 0.8 times more return on investment than LASSONDE INDUSTINC. However, Singapore Telecommunications Limited is 1.26 times less risky than LASSONDE INDUSTINC. It trades about 0.13 of its potential returns per unit of risk. LASSONDE INDUSTINC A is currently generating about 0.08 per unit of risk. If you would invest 209.00 in Singapore Telecommunications Limited on September 2, 2024 and sell it today you would earn a total of 11.00 from holding Singapore Telecommunications Limited or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Telecommunications L vs. LASSONDE INDUSTINC A
Performance |
| Timeline |
| Singapore Telecommunicatio |
| LASSONDE INDUSTINC |
Singapore Telecommunicatio and LASSONDE INDUSTINC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Telecommunicatio and LASSONDE INDUSTINC
The main advantage of trading using opposite Singapore Telecommunicatio and LASSONDE INDUSTINC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Telecommunicatio position performs unexpectedly, LASSONDE INDUSTINC 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 LASSONDE INDUSTINC will offset losses from the drop in LASSONDE INDUSTINC's long position.| Singapore Telecommunicatio vs. LGI Homes | Singapore Telecommunicatio vs. DATAGROUP SE | Singapore Telecommunicatio vs. Science Applications International | Singapore Telecommunicatio vs. HomeToGo SE |
| LASSONDE INDUSTINC vs. Ribbon Communications | LASSONDE INDUSTINC vs. CosmoSteel Holdings Limited | LASSONDE INDUSTINC vs. COSMOSTEEL HLDGS | LASSONDE INDUSTINC vs. Singapore Telecommunications Limited |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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