Correlation Between Singapore Telecommunicatio and Platinum Investment
Can any of the company-specific risk be diversified away by investing in both Singapore Telecommunicatio and Platinum Investment 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 Platinum Investment 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 Platinum Investment Management, you can compare the effects of market volatilities on Singapore Telecommunicatio and Platinum Investment 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 Platinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Telecommunicatio and Platinum Investment.
Diversification Opportunities for Singapore Telecommunicatio and Platinum Investment
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Singapore and Platinum is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Telecommunications L and Platinum Investment Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Investment 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 Platinum Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Investment has no effect on the direction of Singapore Telecommunicatio i.e., Singapore Telecommunicatio and Platinum Investment go up and down completely randomly.
Pair Corralation between Singapore Telecommunicatio and Platinum Investment
Assuming the 90 days trading horizon Singapore Telecommunications Limited is expected to generate 0.53 times more return on investment than Platinum Investment. However, Singapore Telecommunications Limited is 1.88 times less risky than Platinum Investment. It trades about 0.05 of its potential returns per unit of risk. Platinum Investment Management is currently generating about -0.01 per unit of risk. If you would invest 159.00 in Singapore Telecommunications Limited on October 9, 2024 and sell it today you would earn a total of 59.00 from holding Singapore Telecommunications Limited or generate 37.11% 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. Platinum Investment Management
Performance |
| Timeline |
| Singapore Telecommunicatio |
| Platinum Investment |
Singapore Telecommunicatio and Platinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Telecommunicatio and Platinum Investment
The main advantage of trading using opposite Singapore Telecommunicatio and Platinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Telecommunicatio position performs unexpectedly, Platinum Investment 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 Platinum Investment will offset losses from the drop in Platinum Investment's long position.| Singapore Telecommunicatio vs. Nippon Telegraph and | Singapore Telecommunicatio vs. Superior Plus Corp | Singapore Telecommunicatio vs. NMI Holdings | Singapore Telecommunicatio vs. SIVERS SEMICONDUCTORS AB |
| Platinum Investment vs. Ares Management Corp | Platinum Investment vs. Superior Plus Corp | Platinum Investment vs. NMI Holdings | Platinum Investment vs. SIVERS SEMICONDUCTORS AB |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |