Correlation Between Glucose Health and Singapore Exchange

Can any of the company-specific risk be diversified away by investing in both Glucose Health and Singapore Exchange 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 Glucose Health and Singapore Exchange into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Glucose Health and Singapore Exchange Limited, you can compare the effects of market volatilities on Glucose Health and Singapore Exchange 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 Glucose Health with a short position of Singapore Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glucose Health and Singapore Exchange.

Diversification Opportunities for Glucose Health and Singapore Exchange

-0.55

Correlation Coefficient

Glucose Health  Singapore Exchange

Excellent diversification

The 3 months correlation between Glucose and Singapore is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Glucose Health and Singapore Exchange Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Exchange and Glucose Health 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 Glucose Health are associated (or correlated) with Singapore Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Exchange has no effect on the direction of Glucose Health i.e., Glucose Health and Singapore Exchange go up and down completely randomly.

Pair Corralation between Glucose Health and Singapore Exchange

Given the investment horizon of 90 days Glucose Health is expected to generate 7.27 times more return on investment than Singapore Exchange. However, Glucose Health is 7.27 times more volatile than Singapore Exchange Limited. It trades about 0.04 of its potential returns per unit of risk. Singapore Exchange Limited is currently generating about 0.07 per unit of risk. If you would invest  18.00  in Glucose Health on September 19, 2024 and sell it today you would lose (8.45) from holding Glucose Health or give up 46.94% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	92.86%
Values	Daily Returns

Glucose Health  vs.  Singapore Exchange Limited

Glucose Health

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Glucose Health has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Glucose Health is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Singapore Exchange

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Singapore Exchange Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Singapore Exchange is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Glucose Health and Singapore Exchange

The main advantage of trading using opposite Glucose Health and Singapore Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glucose Health position performs unexpectedly, Singapore Exchange 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 Exchange will offset losses from the drop in Singapore Exchange's long position.

The idea behind Glucose Health and Singapore Exchange Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.