Correlation Between Singapore Telecommunicatio and OFFICE DEPOT
Can any of the company-specific risk be diversified away by investing in both Singapore Telecommunicatio and OFFICE DEPOT 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 OFFICE DEPOT 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 OFFICE DEPOT, you can compare the effects of market volatilities on Singapore Telecommunicatio and OFFICE DEPOT 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 OFFICE DEPOT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Telecommunicatio and OFFICE DEPOT.
Diversification Opportunities for Singapore Telecommunicatio and OFFICE DEPOT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Singapore and OFFICE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Telecommunications L and OFFICE DEPOT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFFICE DEPOT 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 OFFICE DEPOT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFFICE DEPOT has no effect on the direction of Singapore Telecommunicatio i.e., Singapore Telecommunicatio and OFFICE DEPOT go up and down completely randomly.
Pair Corralation between Singapore Telecommunicatio and OFFICE DEPOT
If you would invest 224.00 in Singapore Telecommunications Limited on November 28, 2024 and sell it today you would earn a total of 11.00 from holding Singapore Telecommunications Limited or generate 4.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Telecommunications L vs. OFFICE DEPOT
Performance |
| Timeline |
| Singapore Telecommunicatio |
| OFFICE DEPOT |
Singapore Telecommunicatio and OFFICE DEPOT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Telecommunicatio and OFFICE DEPOT
The main advantage of trading using opposite Singapore Telecommunicatio and OFFICE DEPOT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Telecommunicatio position performs unexpectedly, OFFICE DEPOT 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 OFFICE DEPOT will offset losses from the drop in OFFICE DEPOT's long position.| Singapore Telecommunicatio vs. Pets at Home | Singapore Telecommunicatio vs. Cembra Money Bank | Singapore Telecommunicatio vs. PRINCIPAL FINANCIAL | Singapore Telecommunicatio vs. CENTURIA OFFICE REIT |
| OFFICE DEPOT vs. QINGCI GAMES INC | OFFICE DEPOT vs. TELECOM ITALRISP ADR10 | OFFICE DEPOT vs. CONTAGIOUS GAMING INC | OFFICE DEPOT vs. Cairo Communication SpA |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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