Correlation Between Singapore Telecommunicatio and GLOBUS MEDICAL
Can any of the company-specific risk be diversified away by investing in both Singapore Telecommunicatio and GLOBUS MEDICAL 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 GLOBUS MEDICAL 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 GLOBUS MEDICAL A, you can compare the effects of market volatilities on Singapore Telecommunicatio and GLOBUS MEDICAL 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 GLOBUS MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Telecommunicatio and GLOBUS MEDICAL.
Diversification Opportunities for Singapore Telecommunicatio and GLOBUS MEDICAL
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Singapore and GLOBUS is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Telecommunications L and GLOBUS MEDICAL A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLOBUS MEDICAL A 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 GLOBUS MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLOBUS MEDICAL A has no effect on the direction of Singapore Telecommunicatio i.e., Singapore Telecommunicatio and GLOBUS MEDICAL go up and down completely randomly.
Pair Corralation between Singapore Telecommunicatio and GLOBUS MEDICAL
Assuming the 90 days trading horizon Singapore Telecommunicatio is expected to generate 4.1 times less return on investment than GLOBUS MEDICAL. But when comparing it to its historical volatility, Singapore Telecommunications Limited is 1.19 times less risky than GLOBUS MEDICAL. It trades about 0.04 of its potential returns per unit of risk. GLOBUS MEDICAL A is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 8,000 in GLOBUS MEDICAL A on October 30, 2024 and sell it today you would earn a total of 700.00 from holding GLOBUS MEDICAL A or generate 8.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Telecommunications L vs. GLOBUS MEDICAL A
Performance |
| Timeline |
| Singapore Telecommunicatio |
| GLOBUS MEDICAL A |
Singapore Telecommunicatio and GLOBUS MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Telecommunicatio and GLOBUS MEDICAL
The main advantage of trading using opposite Singapore Telecommunicatio and GLOBUS MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Telecommunicatio position performs unexpectedly, GLOBUS MEDICAL 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 GLOBUS MEDICAL will offset losses from the drop in GLOBUS MEDICAL's long position.| Singapore Telecommunicatio vs. T Mobile | Singapore Telecommunicatio vs. China Mobile Limited | Singapore Telecommunicatio vs. Verizon Communications | Singapore Telecommunicatio vs. ATT Inc |
| GLOBUS MEDICAL vs. PKSHA TECHNOLOGY INC | GLOBUS MEDICAL vs. Cognizant Technology Solutions | GLOBUS MEDICAL vs. Firan Technology Group | GLOBUS MEDICAL vs. DXC Technology 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |