Correlation Between Singapore Telecommunicatio and SHELL PLC
Can any of the company-specific risk be diversified away by investing in both Singapore Telecommunicatio and SHELL PLC 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 SHELL PLC 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 SHELL PLC WI, you can compare the effects of market volatilities on Singapore Telecommunicatio and SHELL PLC 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 SHELL PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Telecommunicatio and SHELL PLC.
Diversification Opportunities for Singapore Telecommunicatio and SHELL PLC
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Singapore and SHELL is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Telecommunications L and SHELL PLC WI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHELL PLC WI 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 SHELL PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHELL PLC WI has no effect on the direction of Singapore Telecommunicatio i.e., Singapore Telecommunicatio and SHELL PLC go up and down completely randomly.
Pair Corralation between Singapore Telecommunicatio and SHELL PLC
Assuming the 90 days trading horizon Singapore Telecommunications Limited is expected to generate 1.67 times more return on investment than SHELL PLC. However, Singapore Telecommunicatio is 1.67 times more volatile than SHELL PLC WI. It trades about 0.06 of its potential returns per unit of risk. SHELL PLC WI is currently generating about 0.05 per unit of risk. If you would invest 214.00 in Singapore Telecommunications Limited on September 5, 2024 and sell it today you would earn a total of 5.00 from holding Singapore Telecommunications Limited or generate 2.34% 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. SHELL PLC WI
Performance |
| Timeline |
| Singapore Telecommunicatio |
| SHELL PLC WI |
Singapore Telecommunicatio and SHELL PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Telecommunicatio and SHELL PLC
The main advantage of trading using opposite Singapore Telecommunicatio and SHELL PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Telecommunicatio position performs unexpectedly, SHELL PLC 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 SHELL PLC will offset losses from the drop in SHELL PLC's long position.| Singapore Telecommunicatio vs. TROPHY GAMES DEV | Singapore Telecommunicatio vs. CI GAMES SA | Singapore Telecommunicatio vs. Major Drilling Group | Singapore Telecommunicatio vs. BORR DRILLING NEW |
| SHELL PLC vs. Ebro Foods SA | SHELL PLC vs. USU Software AG | SHELL PLC vs. Lifeway Foods | SHELL PLC vs. Zoom Video 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |