Correlation Between USWE SPORTS and SINGAPORE AIRLINES

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Can any of the company-specific risk be diversified away by investing in both USWE SPORTS and SINGAPORE AIRLINES 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 USWE SPORTS and SINGAPORE AIRLINES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USWE SPORTS AB and SINGAPORE AIRLINES, you can compare the effects of market volatilities on USWE SPORTS and SINGAPORE AIRLINES 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 USWE SPORTS with a short position of SINGAPORE AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of USWE SPORTS and SINGAPORE AIRLINES.

Diversification Opportunities for USWE SPORTS and SINGAPORE AIRLINES

0.61
  Correlation Coefficient

Poor diversification

The 3 months correlation between USWE and SINGAPORE is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding USWE SPORTS AB and SINGAPORE AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE AIRLINES and USWE SPORTS 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 USWE SPORTS AB are associated (or correlated) with SINGAPORE AIRLINES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINGAPORE AIRLINES has no effect on the direction of USWE SPORTS i.e., USWE SPORTS and SINGAPORE AIRLINES go up and down completely randomly.

Pair Corralation between USWE SPORTS and SINGAPORE AIRLINES

Assuming the 90 days horizon USWE SPORTS AB is expected to generate 4.4 times more return on investment than SINGAPORE AIRLINES. However, USWE SPORTS is 4.4 times more volatile than SINGAPORE AIRLINES. It trades about 0.29 of its potential returns per unit of risk. SINGAPORE AIRLINES is currently generating about 0.2 per unit of risk. If you would invest  63.00  in USWE SPORTS AB on April 24, 2025 and sell it today you would earn a total of  58.00  from holding USWE SPORTS AB or generate 92.06% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

USWE SPORTS AB  vs.  SINGAPORE AIRLINES

 Performance 
       Timeline  
USWE SPORTS AB 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in USWE SPORTS AB are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, USWE SPORTS reported solid returns over the last few months and may actually be approaching a breakup point.
SINGAPORE AIRLINES 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in SINGAPORE AIRLINES are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, SINGAPORE AIRLINES may actually be approaching a critical reversion point that can send shares even higher in August 2025.

USWE SPORTS and SINGAPORE AIRLINES Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with USWE SPORTS and SINGAPORE AIRLINES

The main advantage of trading using opposite USWE SPORTS and SINGAPORE AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USWE SPORTS position performs unexpectedly, SINGAPORE AIRLINES 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 AIRLINES will offset losses from the drop in SINGAPORE AIRLINES's long position.
The idea behind USWE SPORTS AB and SINGAPORE AIRLINES 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.
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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