Correlation Between Singapore Telecommunicatio and Cass Information
Can any of the company-specific risk be diversified away by investing in both Singapore Telecommunicatio and Cass Information 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 Cass Information 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 Cass Information Systems, you can compare the effects of market volatilities on Singapore Telecommunicatio and Cass Information 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 Cass Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Telecommunicatio and Cass Information.
Diversification Opportunities for Singapore Telecommunicatio and Cass Information
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Singapore and Cass is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Telecommunications L and Cass Information Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cass Information Systems 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 Cass Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cass Information Systems has no effect on the direction of Singapore Telecommunicatio i.e., Singapore Telecommunicatio and Cass Information go up and down completely randomly.
Pair Corralation between Singapore Telecommunicatio and Cass Information
Assuming the 90 days trading horizon Singapore Telecommunicatio is expected to generate 9.0 times less return on investment than Cass Information. But when comparing it to its historical volatility, Singapore Telecommunications Limited is 1.17 times less risky than Cass Information. It trades about 0.02 of its potential returns per unit of risk. Cass Information Systems is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 3,960 in Cass Information Systems on August 31, 2024 and sell it today you would earn a total of 280.00 from holding Cass Information Systems or generate 7.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Telecommunications L vs. Cass Information Systems
Performance |
| Timeline |
| Singapore Telecommunicatio |
| Cass Information Systems |
Singapore Telecommunicatio and Cass Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Telecommunicatio and Cass Information
The main advantage of trading using opposite Singapore Telecommunicatio and Cass Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Telecommunicatio position performs unexpectedly, Cass Information 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 Cass Information will offset losses from the drop in Cass Information's long position.| Singapore Telecommunicatio vs. T Mobile | Singapore Telecommunicatio vs. ATT Inc | Singapore Telecommunicatio vs. Deutsche Telekom AG | Singapore Telecommunicatio vs. Superior Plus Corp |
| Cass Information vs. Singapore Telecommunications Limited | Cass Information vs. SBA Communications Corp | Cass Information vs. Tower One Wireless | Cass Information vs. Verizon Communications |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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