Correlation Between MARKET VECTR and Singapore Reinsurance
Can any of the company-specific risk be diversified away by investing in both MARKET VECTR and Singapore Reinsurance 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 MARKET VECTR and Singapore Reinsurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MARKET VECTR RETAIL and Singapore Reinsurance, you can compare the effects of market volatilities on MARKET VECTR and Singapore Reinsurance 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 MARKET VECTR with a short position of Singapore Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of MARKET VECTR and Singapore Reinsurance.
Diversification Opportunities for MARKET VECTR and Singapore Reinsurance
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MARKET and Singapore is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding MARKET VECTR RETAIL and Singapore Reinsurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Reinsurance and MARKET VECTR 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 MARKET VECTR RETAIL are associated (or correlated) with Singapore Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Reinsurance has no effect on the direction of MARKET VECTR i.e., MARKET VECTR and Singapore Reinsurance go up and down completely randomly.
Pair Corralation between MARKET VECTR and Singapore Reinsurance
Assuming the 90 days trading horizon MARKET VECTR is expected to generate 1.01 times less return on investment than Singapore Reinsurance. But when comparing it to its historical volatility, MARKET VECTR RETAIL is 2.59 times less risky than Singapore Reinsurance. It trades about 0.26 of its potential returns per unit of risk. Singapore Reinsurance is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,820 in Singapore Reinsurance on November 7, 2024 and sell it today you would earn a total of 740.00 from holding Singapore Reinsurance or generate 26.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.56% |
| Values | Daily Returns |
MARKET VECTR RETAIL vs. Singapore Reinsurance
Performance |
| Timeline |
| MARKET VECTR RETAIL |
| Singapore Reinsurance |
MARKET VECTR and Singapore Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MARKET VECTR and Singapore Reinsurance
The main advantage of trading using opposite MARKET VECTR and Singapore Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MARKET VECTR position performs unexpectedly, Singapore Reinsurance 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 Reinsurance will offset losses from the drop in Singapore Reinsurance's long position.| MARKET VECTR vs. New Residential Investment | MARKET VECTR vs. Scottish Mortgage Investment | MARKET VECTR vs. North American Construction | MARKET VECTR vs. PennantPark Investment |
| Singapore Reinsurance vs. American Public Education | Singapore Reinsurance vs. Laureate Education | Singapore Reinsurance vs. DEVRY EDUCATION GRP | Singapore Reinsurance vs. RYU Apparel |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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