Correlation Between SINGAPORE AIRLINES and AdCapital
Can any of the company-specific risk be diversified away by investing in both SINGAPORE AIRLINES and AdCapital 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 AIRLINES and AdCapital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SINGAPORE AIRLINES and AdCapital AG, you can compare the effects of market volatilities on SINGAPORE AIRLINES and AdCapital 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 AIRLINES with a short position of AdCapital. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINGAPORE AIRLINES and AdCapital.
Diversification Opportunities for SINGAPORE AIRLINES and AdCapital
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SINGAPORE and AdCapital is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding SINGAPORE AIRLINES and AdCapital AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdCapital AG and SINGAPORE AIRLINES 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 AIRLINES are associated (or correlated) with AdCapital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdCapital AG has no effect on the direction of SINGAPORE AIRLINES i.e., SINGAPORE AIRLINES and AdCapital go up and down completely randomly.
Pair Corralation between SINGAPORE AIRLINES and AdCapital
Assuming the 90 days trading horizon SINGAPORE AIRLINES is expected to generate 0.33 times more return on investment than AdCapital. However, SINGAPORE AIRLINES is 3.06 times less risky than AdCapital. It trades about 0.22 of its potential returns per unit of risk. AdCapital AG is currently generating about 0.02 per unit of risk. If you would invest 435.00 in SINGAPORE AIRLINES on April 23, 2025 and sell it today you would earn a total of 56.00 from holding SINGAPORE AIRLINES or generate 12.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
SINGAPORE AIRLINES vs. AdCapital AG
Performance |
Timeline |
SINGAPORE AIRLINES |
AdCapital AG |
SINGAPORE AIRLINES and AdCapital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SINGAPORE AIRLINES and AdCapital
The main advantage of trading using opposite SINGAPORE AIRLINES and AdCapital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINGAPORE AIRLINES position performs unexpectedly, AdCapital 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 AdCapital will offset losses from the drop in AdCapital's long position.SINGAPORE AIRLINES vs. COFCO Joycome Foods | SINGAPORE AIRLINES vs. Entravision Communications | SINGAPORE AIRLINES vs. Astral Foods Limited | SINGAPORE AIRLINES vs. Ribbon Communications |
AdCapital vs. Ameriprise Financial | AdCapital vs. Ares Management Corp | AdCapital vs. AUREA SA INH | AdCapital vs. SIVERS SEMICONDUCTORS AB |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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