Correlation Between Sygnia and Blue Label
Can any of the company-specific risk be diversified away by investing in both Sygnia and Blue Label 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 Sygnia and Blue Label into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sygnia and Blue Label Telecoms, you can compare the effects of market volatilities on Sygnia and Blue Label 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 Sygnia with a short position of Blue Label. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sygnia and Blue Label.
Diversification Opportunities for Sygnia and Blue Label
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sygnia and Blue is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sygnia and Blue Label Telecoms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Label Telecoms and Sygnia 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 Sygnia are associated (or correlated) with Blue Label. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Label Telecoms has no effect on the direction of Sygnia i.e., Sygnia and Blue Label go up and down completely randomly.
Pair Corralation between Sygnia and Blue Label
Assuming the 90 days trading horizon Sygnia is expected to generate 0.84 times more return on investment than Blue Label. However, Sygnia is 1.19 times less risky than Blue Label. It trades about 0.04 of its potential returns per unit of risk. Blue Label Telecoms is currently generating about 0.02 per unit of risk. If you would invest 168,555 in Sygnia on September 3, 2024 and sell it today you would earn a total of 54,945 from holding Sygnia or generate 32.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.19% |
| Values | Daily Returns |
Sygnia vs. Blue Label Telecoms
Performance |
| Timeline |
| Sygnia |
| Blue Label Telecoms |
Sygnia and Blue Label Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sygnia and Blue Label
The main advantage of trading using opposite Sygnia and Blue Label positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sygnia position performs unexpectedly, Blue Label 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 Blue Label will offset losses from the drop in Blue Label's long position.| Sygnia vs. Frontier Transport Holdings | Sygnia vs. Ascendis Health | Sygnia vs. Zeder Investments | Sygnia vs. CA Sales Holdings |
| Blue Label vs. Brimstone Investment | Blue Label vs. Master Drilling Group | Blue Label vs. Astral Foods | Blue Label vs. Harmony Gold Mining |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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