Correlation Between Singha Estate and Frasers Property
Can any of the company-specific risk be diversified away by investing in both Singha Estate and Frasers Property 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 Singha Estate and Frasers Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singha Estate Public and Frasers Property Public, you can compare the effects of market volatilities on Singha Estate and Frasers Property 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 Singha Estate with a short position of Frasers Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singha Estate and Frasers Property.
Diversification Opportunities for Singha Estate and Frasers Property
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Singha and Frasers is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Singha Estate Public and Frasers Property Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frasers Property Public and Singha Estate 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 Singha Estate Public are associated (or correlated) with Frasers Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frasers Property Public has no effect on the direction of Singha Estate i.e., Singha Estate and Frasers Property go up and down completely randomly.
Pair Corralation between Singha Estate and Frasers Property
Assuming the 90 days trading horizon Singha Estate Public is expected to generate 47.76 times more return on investment than Frasers Property. However, Singha Estate is 47.76 times more volatile than Frasers Property Public. It trades about 0.06 of its potential returns per unit of risk. Frasers Property Public is currently generating about -0.02 per unit of risk. If you would invest 184.00 in Singha Estate Public on September 26, 2024 and sell it today you would lose (93.00) from holding Singha Estate Public or give up 50.54% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Singha Estate Public vs. Frasers Property Public
Performance |
Timeline |
Singha Estate Public |
Frasers Property Public |
Singha Estate and Frasers Property Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Singha Estate and Frasers Property
The main advantage of trading using opposite Singha Estate and Frasers Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singha Estate position performs unexpectedly, Frasers Property 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 Frasers Property will offset losses from the drop in Frasers Property's long position.Singha Estate vs. Frasers Property Public | Singha Estate vs. Areeya Property Public | Singha Estate vs. Asset Five Group | Singha Estate vs. PINTHONG INDUSTRIAL PARK |
Frasers Property vs. Singha Estate Public | Frasers Property vs. Areeya Property Public | Frasers Property vs. Asset Five Group | Frasers Property vs. PINTHONG INDUSTRIAL PARK |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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