Correlation Between Singapore Telecommunicatio and Bayerische Motoren
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By analyzing existing cross correlation between Singapore Telecommunications Limited and Bayerische Motoren Werke, you can compare the effects of market volatilities on Singapore Telecommunicatio and Bayerische Motoren 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 Bayerische Motoren. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Telecommunicatio and Bayerische Motoren.
Diversification Opportunities for Singapore Telecommunicatio and Bayerische Motoren
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Singapore and Bayerische is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Telecommunications L and Bayerische Motoren Werke in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayerische Motoren Werke 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 Bayerische Motoren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayerische Motoren Werke has no effect on the direction of Singapore Telecommunicatio i.e., Singapore Telecommunicatio and Bayerische Motoren go up and down completely randomly.
Pair Corralation between Singapore Telecommunicatio and Bayerische Motoren
Assuming the 90 days trading horizon Singapore Telecommunications Limited is expected to generate 1.05 times more return on investment than Bayerische Motoren. However, Singapore Telecommunicatio is 1.05 times more volatile than Bayerische Motoren Werke. It trades about 0.11 of its potential returns per unit of risk. Bayerische Motoren Werke is currently generating about -0.1 per unit of risk. If you would invest 211.00 in Singapore Telecommunications Limited on September 1, 2024 and sell it today you would earn a total of 9.00 from holding Singapore Telecommunications Limited or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Singapore Telecommunications L vs. Bayerische Motoren Werke
Performance |
| Timeline |
| Singapore Telecommunicatio |
| Bayerische Motoren Werke |
Singapore Telecommunicatio and Bayerische Motoren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Telecommunicatio and Bayerische Motoren
The main advantage of trading using opposite Singapore Telecommunicatio and Bayerische Motoren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Telecommunicatio position performs unexpectedly, Bayerische Motoren 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 Bayerische Motoren will offset losses from the drop in Bayerische Motoren's long position.| Singapore Telecommunicatio vs. Monster Beverage Corp | Singapore Telecommunicatio vs. United Breweries Co | Singapore Telecommunicatio vs. ARISTOCRAT LEISURE | Singapore Telecommunicatio vs. ePlay Digital |
| Bayerische Motoren vs. VULCAN MATERIALS | Bayerische Motoren vs. EAGLE MATERIALS | Bayerische Motoren vs. Summit Materials | Bayerische Motoren 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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