Correlation Between Singapore Telecommunicatio and ANTA Sports
Can any of the company-specific risk be diversified away by investing in both Singapore Telecommunicatio and ANTA Sports 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 ANTA Sports 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 ANTA Sports Products, you can compare the effects of market volatilities on Singapore Telecommunicatio and ANTA Sports 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 ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Telecommunicatio and ANTA Sports.
Diversification Opportunities for Singapore Telecommunicatio and ANTA Sports
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Singapore and ANTA is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Telecommunications L and ANTA Sports Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA Sports Products 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 ANTA Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA Sports Products has no effect on the direction of Singapore Telecommunicatio i.e., Singapore Telecommunicatio and ANTA Sports go up and down completely randomly.
Pair Corralation between Singapore Telecommunicatio and ANTA Sports
Assuming the 90 days trading horizon Singapore Telecommunicatio is expected to generate 2.38 times less return on investment than ANTA Sports. But when comparing it to its historical volatility, Singapore Telecommunications Limited is 1.32 times less risky than ANTA Sports. It trades about 0.12 of its potential returns per unit of risk. ANTA Sports Products is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 958.00 in ANTA Sports Products on December 11, 2024 and sell it today you would earn a total of 178.00 from holding ANTA Sports Products or generate 18.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Telecommunications L vs. ANTA Sports Products
Performance |
| Timeline |
| Singapore Telecommunicatio |
| ANTA Sports Products |
Singapore Telecommunicatio and ANTA Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Telecommunicatio and ANTA Sports
The main advantage of trading using opposite Singapore Telecommunicatio and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Telecommunicatio position performs unexpectedly, ANTA Sports 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 ANTA Sports will offset losses from the drop in ANTA Sports' long position.| Singapore Telecommunicatio vs. CARSALESCOM | Singapore Telecommunicatio vs. TAL Education Group | Singapore Telecommunicatio vs. Salesforce | Singapore Telecommunicatio vs. STRAYER EDUCATION |
| ANTA Sports vs. OFFICE DEPOT | ANTA Sports vs. KENEDIX OFFICE INV | ANTA Sports vs. American Homes 4 | ANTA Sports vs. Gladstone Investment |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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