Correlation Between Evolution Mining and SINGAPORE AIRLINES
Can any of the company-specific risk be diversified away by investing in both Evolution Mining 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 Evolution Mining and SINGAPORE AIRLINES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolution Mining Limited and SINGAPORE AIRLINES, you can compare the effects of market volatilities on Evolution Mining 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 Evolution Mining with a short position of SINGAPORE AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Mining and SINGAPORE AIRLINES.
Diversification Opportunities for Evolution Mining and SINGAPORE AIRLINES
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Evolution and SINGAPORE is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Mining Limited and SINGAPORE AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE AIRLINES and Evolution Mining 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 Evolution Mining Limited 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 Evolution Mining i.e., Evolution Mining and SINGAPORE AIRLINES go up and down completely randomly.
Pair Corralation between Evolution Mining and SINGAPORE AIRLINES
Assuming the 90 days horizon Evolution Mining Limited is expected to generate 2.15 times more return on investment than SINGAPORE AIRLINES. However, Evolution Mining is 2.15 times more volatile than SINGAPORE AIRLINES. It trades about 0.06 of its potential returns per unit of risk. SINGAPORE AIRLINES is currently generating about 0.05 per unit of risk. If you would invest 173.00 in Evolution Mining Limited on September 3, 2024 and sell it today you would earn a total of 142.00 from holding Evolution Mining Limited or generate 82.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolution Mining Limited vs. SINGAPORE AIRLINES
Performance |
| Timeline |
| Evolution Mining |
| SINGAPORE AIRLINES |
Evolution Mining and SINGAPORE AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolution Mining and SINGAPORE AIRLINES
The main advantage of trading using opposite Evolution Mining and SINGAPORE AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Mining 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's long position.| Evolution Mining vs. ZIJIN MINH UNSPADR20 | Evolution Mining vs. Barrick Gold | Evolution Mining vs. Superior Plus Corp | Evolution Mining vs. NMI Holdings |
| SINGAPORE AIRLINES vs. REVO INSURANCE SPA | SINGAPORE AIRLINES vs. ALBIS LEASING AG | SINGAPORE AIRLINES vs. Evolution Mining Limited | SINGAPORE AIRLINES vs. PT Bank Maybank |
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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