Correlation Between Singapore Exchange and Singapore Exchange
Can any of the company-specific risk be diversified away by investing in both Singapore Exchange and Singapore Exchange 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 Exchange and Singapore Exchange into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singapore Exchange Ltd and Singapore Exchange Limited, you can compare the effects of market volatilities on Singapore Exchange and Singapore Exchange 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 Exchange with a short position of Singapore Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Exchange and Singapore Exchange.
Diversification Opportunities for Singapore Exchange and Singapore Exchange
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Singapore and Singapore is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Exchange Ltd and Singapore Exchange Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Exchange and Singapore Exchange 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 Exchange Ltd are associated (or correlated) with Singapore Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Exchange has no effect on the direction of Singapore Exchange i.e., Singapore Exchange and Singapore Exchange go up and down completely randomly.
Pair Corralation between Singapore Exchange and Singapore Exchange
Assuming the 90 days horizon Singapore Exchange Ltd is expected to generate 0.74 times more return on investment than Singapore Exchange. However, Singapore Exchange Ltd is 1.35 times less risky than Singapore Exchange. It trades about 0.38 of its potential returns per unit of risk. Singapore Exchange Limited is currently generating about 0.12 per unit of risk. If you would invest 1,639 in Singapore Exchange Ltd on August 28, 2024 and sell it today you would earn a total of 228.00 from holding Singapore Exchange Ltd or generate 13.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Exchange Ltd vs. Singapore Exchange Limited
Performance |
| Timeline |
| Singapore Exchange |
| Singapore Exchange |
Singapore Exchange and Singapore Exchange Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Exchange and Singapore Exchange
The main advantage of trading using opposite Singapore Exchange and Singapore Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Exchange position performs unexpectedly, Singapore Exchange 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 Singapore Exchange will offset losses from the drop in Singapore Exchange's long position.| Singapore Exchange vs. Hong Kong Exchanges | Singapore Exchange vs. Deutsche Boerse AG | Singapore Exchange vs. SP Global | Singapore Exchange vs. Moodys |
| Singapore Exchange vs. Hong Kong Exchanges | Singapore Exchange vs. Deutsche Boerse AG | Singapore Exchange vs. SP Global | Singapore Exchange vs. Moodys |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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