Correlation Between Singapore Telecommunicatio and Allegheny Technologies
Can any of the company-specific risk be diversified away by investing in both Singapore Telecommunicatio and Allegheny Technologies 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 Allegheny Technologies 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 Allegheny Technologies Incorporated, you can compare the effects of market volatilities on Singapore Telecommunicatio and Allegheny Technologies 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 Allegheny Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Telecommunicatio and Allegheny Technologies.
Diversification Opportunities for Singapore Telecommunicatio and Allegheny Technologies
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Singapore and Allegheny is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Telecommunications L and Allegheny Technologies Incorpo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegheny Technologies 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 Allegheny Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allegheny Technologies has no effect on the direction of Singapore Telecommunicatio i.e., Singapore Telecommunicatio and Allegheny Technologies go up and down completely randomly.
Pair Corralation between Singapore Telecommunicatio and Allegheny Technologies
Assuming the 90 days trading horizon Singapore Telecommunications Limited is expected to generate 0.71 times more return on investment than Allegheny Technologies. However, Singapore Telecommunications Limited is 1.4 times less risky than Allegheny Technologies. It trades about 0.26 of its potential returns per unit of risk. Allegheny Technologies Incorporated is currently generating about 0.08 per unit of risk. If you would invest 216.00 in Singapore Telecommunications Limited on November 3, 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Telecommunications L vs. Allegheny Technologies Incorpo
Performance |
| Timeline |
| Singapore Telecommunicatio |
| Allegheny Technologies |
Singapore Telecommunicatio and Allegheny Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Telecommunicatio and Allegheny Technologies
The main advantage of trading using opposite Singapore Telecommunicatio and Allegheny Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Telecommunicatio position performs unexpectedly, Allegheny Technologies 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 Allegheny Technologies will offset losses from the drop in Allegheny Technologies' long position.| Singapore Telecommunicatio vs. HAVERTY FURNITURE A | Singapore Telecommunicatio vs. bet at home AG | Singapore Telecommunicatio vs. Broadcom | Singapore Telecommunicatio vs. INVITATION HOMES DL |
| Allegheny Technologies vs. SCIENCE IN SPORT | Allegheny Technologies vs. SOEDER SPORTFISKE AB | Allegheny Technologies vs. PLAY2CHILL SA ZY | Allegheny Technologies vs. LG Display Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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