Correlation Between Westpac Banking and Singular Health
Can any of the company-specific risk be diversified away by investing in both Westpac Banking and Singular Health 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 Westpac Banking and Singular Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westpac Banking and Singular Health Group, you can compare the effects of market volatilities on Westpac Banking and Singular Health 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 Westpac Banking with a short position of Singular Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westpac Banking and Singular Health.
Diversification Opportunities for Westpac Banking and Singular Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Westpac and Singular is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Westpac Banking and Singular Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singular Health Group and Westpac Banking 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 Westpac Banking are associated (or correlated) with Singular Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singular Health Group has no effect on the direction of Westpac Banking i.e., Westpac Banking and Singular Health go up and down completely randomly.
Pair Corralation between Westpac Banking and Singular Health
If you would invest 8.70 in Singular Health Group on August 29, 2024 and sell it today you would earn a total of 3.30 from holding Singular Health Group or generate 37.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Westpac Banking vs. Singular Health Group
Performance |
| Timeline |
| Westpac Banking |
| Singular Health Group |
Westpac Banking and Singular Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westpac Banking and Singular Health
The main advantage of trading using opposite Westpac Banking and Singular Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westpac Banking position performs unexpectedly, Singular Health 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 Singular Health will offset losses from the drop in Singular Health's long position.| Westpac Banking vs. Advanced Braking Technology | Westpac Banking vs. Talisman Mining | Westpac Banking vs. Regal Funds Management | Westpac Banking vs. Charter Hall Retail |
| Singular Health vs. Westpac Banking | Singular Health vs. Champion Iron | Singular Health vs. Ridley | Singular Health vs. Peel 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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