Correlation Between Singapore Telecommunicatio and Bezeq Israel
Can any of the company-specific risk be diversified away by investing in both Singapore Telecommunicatio and Bezeq Israel 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 Bezeq Israel 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 Bezeq The Israel, you can compare the effects of market volatilities on Singapore Telecommunicatio and Bezeq Israel 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 Bezeq Israel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Telecommunicatio and Bezeq Israel.
Diversification Opportunities for Singapore Telecommunicatio and Bezeq Israel
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Singapore and Bezeq is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Telecommunications L and Bezeq The Israel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bezeq The Israel 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 Bezeq Israel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bezeq The Israel has no effect on the direction of Singapore Telecommunicatio i.e., Singapore Telecommunicatio and Bezeq Israel go up and down completely randomly.
Pair Corralation between Singapore Telecommunicatio and Bezeq Israel
Assuming the 90 days horizon Singapore Telecommunications Limited is expected to generate 1.82 times more return on investment than Bezeq Israel. However, Singapore Telecommunicatio is 1.82 times more volatile than Bezeq The Israel. It trades about 0.07 of its potential returns per unit of risk. Bezeq The Israel is currently generating about -0.07 per unit of risk. If you would invest 160.00 in Singapore Telecommunications Limited on August 26, 2024 and sell it today you would earn a total of 63.00 from holding Singapore Telecommunications Limited or generate 39.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.24% |
| Values | Daily Returns |
Singapore Telecommunications L vs. Bezeq The Israel
Performance |
| Timeline |
| Singapore Telecommunicatio |
| Bezeq The Israel |
Singapore Telecommunicatio and Bezeq Israel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Telecommunicatio and Bezeq Israel
The main advantage of trading using opposite Singapore Telecommunicatio and Bezeq Israel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Telecommunicatio position performs unexpectedly, Bezeq Israel 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 Bezeq Israel will offset losses from the drop in Bezeq Israel's long position.| Singapore Telecommunicatio vs. Vodafone Group PLC | Singapore Telecommunicatio vs. KDDI Corp | Singapore Telecommunicatio vs. Amrica Mvil, SAB | Singapore Telecommunicatio vs. ATT Inc |
| Bezeq Israel vs. Vodafone Group PLC | Bezeq Israel vs. KDDI Corp | Bezeq Israel vs. Amrica Mvil, SAB | Bezeq Israel vs. Singapore Telecommunications Limited |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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