Correlation Between SINGAPORE POST and NTG Nordic
Can any of the company-specific risk be diversified away by investing in both SINGAPORE POST and NTG Nordic 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 NTG Nordic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SINGAPORE POST and NTG Nordic Transport, you can compare the effects of market volatilities on SINGAPORE POST and NTG Nordic 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 NTG Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINGAPORE POST and NTG Nordic.
Diversification Opportunities for SINGAPORE POST and NTG Nordic
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SINGAPORE and NTG is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding SINGAPORE POST and NTG Nordic Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NTG Nordic Transport 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 NTG Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NTG Nordic Transport has no effect on the direction of SINGAPORE POST i.e., SINGAPORE POST and NTG Nordic go up and down completely randomly.
Pair Corralation between SINGAPORE POST and NTG Nordic
Assuming the 90 days trading horizon SINGAPORE POST is expected to generate 1.3 times more return on investment than NTG Nordic. However, SINGAPORE POST is 1.3 times more volatile than NTG Nordic Transport. It trades about 0.14 of its potential returns per unit of risk. NTG Nordic Transport is currently generating about -0.11 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 Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SINGAPORE POST vs. NTG Nordic Transport
Performance |
Timeline |
SINGAPORE POST |
NTG Nordic Transport |
SINGAPORE POST and NTG Nordic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SINGAPORE POST and NTG Nordic
The main advantage of trading using opposite SINGAPORE POST and NTG Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINGAPORE POST position performs unexpectedly, NTG Nordic 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 NTG Nordic will offset losses from the drop in NTG Nordic'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 |
NTG Nordic vs. MITSUBISHI STEEL MFG | NTG Nordic vs. ABO GROUP ENVIRONMENT | NTG Nordic vs. Khiron Life Sciences | NTG Nordic vs. United States Steel |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |