Correlation Between CVW CLEANTECH and Singapore Airlines
Can any of the company-specific risk be diversified away by investing in both CVW CLEANTECH and Singapore Airlines 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 CVW CLEANTECH and Singapore Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVW CLEANTECH INC and Singapore Airlines Limited, you can compare the effects of market volatilities on CVW CLEANTECH and Singapore Airlines 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 CVW CLEANTECH with a short position of Singapore Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVW CLEANTECH and Singapore Airlines.
Diversification Opportunities for CVW CLEANTECH and Singapore Airlines
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between CVW and Singapore is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding CVW CLEANTECH INC and Singapore Airlines Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Airlines and CVW CLEANTECH 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 CVW CLEANTECH INC are associated (or correlated) with Singapore Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Airlines has no effect on the direction of CVW CLEANTECH i.e., CVW CLEANTECH and Singapore Airlines go up and down completely randomly.
Pair Corralation between CVW CLEANTECH and Singapore Airlines
Assuming the 90 days trading horizon CVW CLEANTECH INC is expected to under-perform the Singapore Airlines. In addition to that, CVW CLEANTECH is 3.24 times more volatile than Singapore Airlines Limited. It trades about -0.04 of its total potential returns per unit of risk. Singapore Airlines Limited is currently generating about 0.08 per unit of volatility. If you would invest 441.00 in Singapore Airlines Limited on September 24, 2024 and sell it today you would earn a total of 4.00 from holding Singapore Airlines Limited or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CVW CLEANTECH INC vs. Singapore Airlines Limited
Performance |
| Timeline |
| CVW CLEANTECH INC |
| Singapore Airlines |
CVW CLEANTECH and Singapore Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVW CLEANTECH and Singapore Airlines
The main advantage of trading using opposite CVW CLEANTECH and Singapore Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVW CLEANTECH position performs unexpectedly, Singapore Airlines 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 Airlines will offset losses from the drop in Singapore Airlines' long position.| CVW CLEANTECH vs. Salesforce | CVW CLEANTECH vs. CODERE ONLINE LUX | CVW CLEANTECH vs. EAT WELL INVESTMENT | CVW CLEANTECH vs. HK Electric Investments |
| Singapore Airlines vs. EAT WELL INVESTMENT | Singapore Airlines vs. Strategic Investments AS | Singapore Airlines vs. ECHO INVESTMENT ZY | Singapore Airlines vs. United Airlines Holdings |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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