Correlation Between Singapore Telecommunicatio and PLAYTECH
Can any of the company-specific risk be diversified away by investing in both Singapore Telecommunicatio and PLAYTECH 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 PLAYTECH 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 PLAYTECH, you can compare the effects of market volatilities on Singapore Telecommunicatio and PLAYTECH 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 PLAYTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Telecommunicatio and PLAYTECH.
Diversification Opportunities for Singapore Telecommunicatio and PLAYTECH
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Singapore and PLAYTECH is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Telecommunications L and PLAYTECH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYTECH 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 PLAYTECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYTECH has no effect on the direction of Singapore Telecommunicatio i.e., Singapore Telecommunicatio and PLAYTECH go up and down completely randomly.
Pair Corralation between Singapore Telecommunicatio and PLAYTECH
Assuming the 90 days trading horizon Singapore Telecommunications Limited is expected to generate 2.64 times more return on investment than PLAYTECH. However, Singapore Telecommunicatio is 2.64 times more volatile than PLAYTECH. It trades about 0.13 of its potential returns per unit of risk. PLAYTECH is currently generating about 0.13 per unit of risk. If you would invest 209.00 in Singapore Telecommunications Limited on September 2, 2024 and sell it today you would earn a total of 11.00 from holding Singapore Telecommunications Limited or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Telecommunications L vs. PLAYTECH
Performance |
| Timeline |
| Singapore Telecommunicatio |
| PLAYTECH |
Singapore Telecommunicatio and PLAYTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Telecommunicatio and PLAYTECH
The main advantage of trading using opposite Singapore Telecommunicatio and PLAYTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Telecommunicatio position performs unexpectedly, PLAYTECH 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 PLAYTECH will offset losses from the drop in PLAYTECH's long position.| Singapore Telecommunicatio vs. LGI Homes | Singapore Telecommunicatio vs. DATAGROUP SE | Singapore Telecommunicatio vs. Science Applications International | Singapore Telecommunicatio vs. HomeToGo SE |
| PLAYTECH vs. SIVERS SEMICONDUCTORS AB | PLAYTECH vs. Darden Restaurants | PLAYTECH vs. Reliance Steel Aluminum | PLAYTECH vs. Q2M Managementberatung AG |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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