Correlation Between Singapore Telecommunicatio and VARIOUS EATERIES
Can any of the company-specific risk be diversified away by investing in both Singapore Telecommunicatio and VARIOUS EATERIES 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 VARIOUS EATERIES 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 VARIOUS EATERIES LS, you can compare the effects of market volatilities on Singapore Telecommunicatio and VARIOUS EATERIES 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 VARIOUS EATERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Telecommunicatio and VARIOUS EATERIES.
Diversification Opportunities for Singapore Telecommunicatio and VARIOUS EATERIES
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Singapore and VARIOUS is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Telecommunications L and VARIOUS EATERIES LS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VARIOUS EATERIES 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 VARIOUS EATERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VARIOUS EATERIES has no effect on the direction of Singapore Telecommunicatio i.e., Singapore Telecommunicatio and VARIOUS EATERIES go up and down completely randomly.
Pair Corralation between Singapore Telecommunicatio and VARIOUS EATERIES
Assuming the 90 days trading horizon Singapore Telecommunications Limited is expected to generate 1.02 times more return on investment than VARIOUS EATERIES. However, Singapore Telecommunicatio is 1.02 times more volatile than VARIOUS EATERIES LS. It trades about 0.29 of its potential returns per unit of risk. VARIOUS EATERIES LS is currently generating about -0.22 per unit of risk. If you would invest 216.00 in Singapore Telecommunications Limited on November 1, 2024 and sell it today you would earn a total of 16.00 from holding Singapore Telecommunications Limited or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Singapore Telecommunications L vs. VARIOUS EATERIES LS
Performance |
| Timeline |
| Singapore Telecommunicatio |
| VARIOUS EATERIES |
Singapore Telecommunicatio and VARIOUS EATERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Telecommunicatio and VARIOUS EATERIES
The main advantage of trading using opposite Singapore Telecommunicatio and VARIOUS EATERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Telecommunicatio position performs unexpectedly, VARIOUS EATERIES 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 VARIOUS EATERIES will offset losses from the drop in VARIOUS EATERIES's long position.| Singapore Telecommunicatio vs. REVO INSURANCE SPA | Singapore Telecommunicatio vs. Nok Airlines PCL | Singapore Telecommunicatio vs. Virtu Financial | Singapore Telecommunicatio vs. BRIT AMER TOBACCO |
| VARIOUS EATERIES vs. BioNTech SE | VARIOUS EATERIES vs. Minerals Technologies | VARIOUS EATERIES vs. AAC TECHNOLOGHLDGADR | VARIOUS EATERIES vs. Addtech AB |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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