Correlation Between ATRESMEDIA and Singapore Reinsurance
Can any of the company-specific risk be diversified away by investing in both ATRESMEDIA 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 ATRESMEDIA and Singapore Reinsurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRESMEDIA and Singapore Reinsurance, you can compare the effects of market volatilities on ATRESMEDIA 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 ATRESMEDIA with a short position of Singapore Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRESMEDIA and Singapore Reinsurance.
Diversification Opportunities for ATRESMEDIA and Singapore Reinsurance
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ATRESMEDIA and Singapore is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding ATRESMEDIA and Singapore Reinsurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Reinsurance and ATRESMEDIA 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 ATRESMEDIA 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 ATRESMEDIA i.e., ATRESMEDIA and Singapore Reinsurance go up and down completely randomly.
Pair Corralation between ATRESMEDIA and Singapore Reinsurance
Assuming the 90 days trading horizon ATRESMEDIA is expected to generate 2.53 times less return on investment than Singapore Reinsurance. But when comparing it to its historical volatility, ATRESMEDIA is 3.83 times less risky than Singapore Reinsurance. It trades about 0.27 of its potential returns per unit of risk. Singapore Reinsurance is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 3,140 in Singapore Reinsurance on September 1, 2024 and sell it today you would earn a total of 340.00 from holding Singapore Reinsurance or generate 10.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRESMEDIA vs. Singapore Reinsurance
Performance |
| Timeline |
| ATRESMEDIA |
| Singapore Reinsurance |
ATRESMEDIA and Singapore Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRESMEDIA and Singapore Reinsurance
The main advantage of trading using opposite ATRESMEDIA and Singapore Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRESMEDIA 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.| ATRESMEDIA vs. Singapore Reinsurance | ATRESMEDIA vs. Safety Insurance Group | ATRESMEDIA vs. Direct Line Insurance | ATRESMEDIA vs. LIFENET INSURANCE CO |
| Singapore Reinsurance vs. SIVERS SEMICONDUCTORS AB | Singapore Reinsurance vs. Darden Restaurants | Singapore Reinsurance vs. Reliance Steel Aluminum | Singapore Reinsurance vs. Q2M Managementberatung AG |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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