Correlation Between Singapore Telecommunicatio and VISHAY INTERTECHNOL
Can any of the company-specific risk be diversified away by investing in both Singapore Telecommunicatio and VISHAY INTERTECHNOL 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 VISHAY INTERTECHNOL 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 VISHAY INTERTECHNOL , you can compare the effects of market volatilities on Singapore Telecommunicatio and VISHAY INTERTECHNOL 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 VISHAY INTERTECHNOL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Telecommunicatio and VISHAY INTERTECHNOL.
Diversification Opportunities for Singapore Telecommunicatio and VISHAY INTERTECHNOL
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Singapore and VISHAY is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Telecommunications L and VISHAY INTERTECHNOL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VISHAY INTERTECHNOL 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 VISHAY INTERTECHNOL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VISHAY INTERTECHNOL has no effect on the direction of Singapore Telecommunicatio i.e., Singapore Telecommunicatio and VISHAY INTERTECHNOL go up and down completely randomly.
Pair Corralation between Singapore Telecommunicatio and VISHAY INTERTECHNOL
Assuming the 90 days trading horizon Singapore Telecommunicatio is expected to generate 6.83 times less return on investment than VISHAY INTERTECHNOL. But when comparing it to its historical volatility, Singapore Telecommunications Limited is 2.22 times less risky than VISHAY INTERTECHNOL. It trades about 0.03 of its potential returns per unit of risk. VISHAY INTERTECHNOL is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,655 in VISHAY INTERTECHNOL on August 30, 2024 and sell it today you would earn a total of 115.00 from holding VISHAY INTERTECHNOL or generate 6.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Singapore Telecommunications L vs. VISHAY INTERTECHNOL
Performance |
| Timeline |
| Singapore Telecommunicatio |
| VISHAY INTERTECHNOL |
Singapore Telecommunicatio and VISHAY INTERTECHNOL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Telecommunicatio and VISHAY INTERTECHNOL
The main advantage of trading using opposite Singapore Telecommunicatio and VISHAY INTERTECHNOL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Telecommunicatio position performs unexpectedly, VISHAY INTERTECHNOL 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 VISHAY INTERTECHNOL will offset losses from the drop in VISHAY INTERTECHNOL's long position.| Singapore Telecommunicatio vs. Verizon Communications | Singapore Telecommunicatio vs. ATT Inc | Singapore Telecommunicatio vs. ATT Inc | Singapore Telecommunicatio vs. Deutsche Telekom AG |
| VISHAY INTERTECHNOL vs. Charter Communications | VISHAY INTERTECHNOL vs. Singapore Telecommunications Limited | VISHAY INTERTECHNOL vs. COMBA TELECOM SYST | VISHAY INTERTECHNOL vs. Iridium Communications |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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