Correlation Between SINGAPORE EXUNSPADR/15 and ASX
Can any of the company-specific risk be diversified away by investing in both SINGAPORE EXUNSPADR/15 and ASX 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 EXUNSPADR/15 and ASX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SINGAPORE EXUNSPADR15 and ASX LTD UNSPONSADR, you can compare the effects of market volatilities on SINGAPORE EXUNSPADR/15 and ASX 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 EXUNSPADR/15 with a short position of ASX. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINGAPORE EXUNSPADR/15 and ASX.
Diversification Opportunities for SINGAPORE EXUNSPADR/15 and ASX
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SINGAPORE and ASX is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding SINGAPORE EXUNSPADR15 and ASX LTD UNSPONSADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASX LTD UNSPONSADR and SINGAPORE EXUNSPADR/15 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 EXUNSPADR15 are associated (or correlated) with ASX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASX LTD UNSPONSADR has no effect on the direction of SINGAPORE EXUNSPADR/15 i.e., SINGAPORE EXUNSPADR/15 and ASX go up and down completely randomly.
Pair Corralation between SINGAPORE EXUNSPADR/15 and ASX
Assuming the 90 days trading horizon SINGAPORE EXUNSPADR15 is expected to generate 1.1 times more return on investment than ASX. However, SINGAPORE EXUNSPADR/15 is 1.1 times more volatile than ASX LTD UNSPONSADR. It trades about 0.1 of its potential returns per unit of risk. ASX LTD UNSPONSADR is currently generating about 0.0 per unit of risk. If you would invest 834.00 in SINGAPORE EXUNSPADR15 on November 2, 2024 and sell it today you would earn a total of 806.00 from holding SINGAPORE EXUNSPADR15 or generate 96.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SINGAPORE EXUNSPADR15 vs. ASX LTD UNSPONSADR
Performance |
| Timeline |
| SINGAPORE EXUNSPADR/15 |
| ASX LTD UNSPONSADR |
SINGAPORE EXUNSPADR/15 and ASX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINGAPORE EXUNSPADR/15 and ASX
The main advantage of trading using opposite SINGAPORE EXUNSPADR/15 and ASX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINGAPORE EXUNSPADR/15 position performs unexpectedly, ASX 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 ASX will offset losses from the drop in ASX's long position.| SINGAPORE EXUNSPADR/15 vs. LONDON STEXUNSPADRS12 | SINGAPORE EXUNSPADR/15 vs. Nasdaq Inc | SINGAPORE EXUNSPADR/15 vs. Cboe Global Markets | SINGAPORE EXUNSPADR/15 vs. ASX LTD UNSPONSADR |
| ASX vs. Citic Telecom International | ASX vs. Chunghwa Telecom Co | ASX vs. TELECOM ITALIA | ASX vs. GREENX METALS LTD |
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 Correlations module to find global opportunities by holding instruments from different markets.
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