Correlation Between SINGAPORE POST and SENKO GROUP
Can any of the company-specific risk be diversified away by investing in both SINGAPORE POST and SENKO GROUP 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 SINGAPORE POST and SENKO GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SINGAPORE POST and SENKO GROUP HOLDINGS, you can compare the effects of market volatilities on SINGAPORE POST and SENKO GROUP 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 SINGAPORE POST with a short position of SENKO GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINGAPORE POST and SENKO GROUP.
Diversification Opportunities for SINGAPORE POST and SENKO GROUP
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SINGAPORE and SENKO is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding SINGAPORE POST and SENKO GROUP HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SENKO GROUP HOLDINGS and SINGAPORE POST 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 SINGAPORE POST are associated (or correlated) with SENKO GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SENKO GROUP HOLDINGS has no effect on the direction of SINGAPORE POST i.e., SINGAPORE POST and SENKO GROUP go up and down completely randomly.
Pair Corralation between SINGAPORE POST and SENKO GROUP
Assuming the 90 days trading horizon SINGAPORE POST is expected to generate 1.98 times more return on investment than SENKO GROUP. However, SINGAPORE POST is 1.98 times more volatile than SENKO GROUP HOLDINGS. It trades about 0.14 of its potential returns per unit of risk. SENKO GROUP HOLDINGS is currently generating about 0.25 per unit of risk. If you would invest 31.00 in SINGAPORE POST on September 23, 2024 and sell it today you would earn a total of 7.00 from holding SINGAPORE POST or generate 22.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
SINGAPORE POST vs. SENKO GROUP HOLDINGS
Performance |
Timeline |
SINGAPORE POST |
SENKO GROUP HOLDINGS |
SINGAPORE POST and SENKO GROUP Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SINGAPORE POST and SENKO GROUP
The main advantage of trading using opposite SINGAPORE POST and SENKO GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINGAPORE POST position performs unexpectedly, SENKO GROUP 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 SENKO GROUP will offset losses from the drop in SENKO GROUP's long position.SINGAPORE POST vs. Kuehne Nagel International | SINGAPORE POST vs. ZTO EXPRESS | SINGAPORE POST vs. NIKKON HOLDINGS TD | SINGAPORE POST vs. SENKO GROUP HOLDINGS |
SENKO GROUP vs. Kuehne Nagel International | SENKO GROUP vs. ZTO EXPRESS | SENKO GROUP vs. NIKKON HOLDINGS TD | SENKO GROUP vs. NTG Nordic Transport |
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.
Other Complementary Tools
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |