Correlation Between Singapore Telecommunicatio and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both Singapore Telecommunicatio and MCEWEN MINING 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 MCEWEN MINING 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 MCEWEN MINING INC, you can compare the effects of market volatilities on Singapore Telecommunicatio and MCEWEN MINING 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 MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Telecommunicatio and MCEWEN MINING.
Diversification Opportunities for Singapore Telecommunicatio and MCEWEN MINING
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Singapore and MCEWEN is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Telecommunications L and MCEWEN MINING INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCEWEN MINING INC 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 MCEWEN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCEWEN MINING INC has no effect on the direction of Singapore Telecommunicatio i.e., Singapore Telecommunicatio and MCEWEN MINING go up and down completely randomly.
Pair Corralation between Singapore Telecommunicatio and MCEWEN MINING
Assuming the 90 days trading horizon Singapore Telecommunications Limited is expected to generate 0.44 times more return on investment than MCEWEN MINING. However, Singapore Telecommunications Limited is 2.26 times less risky than MCEWEN MINING. It trades about 0.06 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about 0.02 per unit of risk. If you would invest 158.00 in Singapore Telecommunications Limited on January 17, 2025 and sell it today you would earn a total of 79.00 from holding Singapore Telecommunications Limited or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Telecommunications L vs. MCEWEN MINING INC
Performance |
| Timeline |
| Singapore Telecommunicatio |
| MCEWEN MINING INC |
Singapore Telecommunicatio and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Telecommunicatio and MCEWEN MINING
The main advantage of trading using opposite Singapore Telecommunicatio and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Telecommunicatio position performs unexpectedly, MCEWEN MINING 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 MCEWEN MINING will offset losses from the drop in MCEWEN MINING's long position.| Singapore Telecommunicatio vs. G III Apparel Group | Singapore Telecommunicatio vs. ALBIS LEASING AG | Singapore Telecommunicatio vs. Investment Latour AB | Singapore Telecommunicatio vs. DIVERSIFIED ROYALTY |
| MCEWEN MINING vs. Tower One Wireless | MCEWEN MINING vs. T MOBILE US | MCEWEN MINING vs. G8 EDUCATION | MCEWEN MINING vs. Shenandoah Telecommunications |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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