Correlation Between Singapore Telecommunicatio and UNITED UTILITIES
Can any of the company-specific risk be diversified away by investing in both Singapore Telecommunicatio and UNITED UTILITIES 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 UNITED UTILITIES 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 UNITED UTILITIES GR, you can compare the effects of market volatilities on Singapore Telecommunicatio and UNITED UTILITIES 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 UNITED UTILITIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Telecommunicatio and UNITED UTILITIES.
Diversification Opportunities for Singapore Telecommunicatio and UNITED UTILITIES
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Singapore and UNITED is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Telecommunications L and UNITED UTILITIES GR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED UTILITIES 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 UNITED UTILITIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED UTILITIES has no effect on the direction of Singapore Telecommunicatio i.e., Singapore Telecommunicatio and UNITED UTILITIES go up and down completely randomly.
Pair Corralation between Singapore Telecommunicatio and UNITED UTILITIES
Assuming the 90 days trading horizon Singapore Telecommunications Limited is expected to generate 1.53 times more return on investment than UNITED UTILITIES. However, Singapore Telecommunicatio is 1.53 times more volatile than UNITED UTILITIES GR. It trades about 0.13 of its potential returns per unit of risk. UNITED UTILITIES GR is currently generating about 0.04 per unit of risk. 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 | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Telecommunications L vs. UNITED UTILITIES GR
Performance |
| Timeline |
| Singapore Telecommunicatio |
| UNITED UTILITIES |
Singapore Telecommunicatio and UNITED UTILITIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Telecommunicatio and UNITED UTILITIES
The main advantage of trading using opposite Singapore Telecommunicatio and UNITED UTILITIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Telecommunicatio position performs unexpectedly, UNITED UTILITIES 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 UNITED UTILITIES will offset losses from the drop in UNITED UTILITIES'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 |
| UNITED UTILITIES vs. Investment AB Latour | UNITED UTILITIES vs. China Foods Limited | UNITED UTILITIES vs. New Residential Investment | UNITED UTILITIES vs. AGNC Investment Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |