Correlation Between SINGAPORE AIRLINES and ORIX JREIT

Can any of the company-specific risk be diversified away by investing in both SINGAPORE AIRLINES and ORIX JREIT 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 ORIX JREIT into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SINGAPORE AIRLINES and ORIX JREIT INC, you can compare the effects of market volatilities on SINGAPORE AIRLINES and ORIX JREIT 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 ORIX JREIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINGAPORE AIRLINES and ORIX JREIT.

Diversification Opportunities for SINGAPORE AIRLINES and ORIX JREIT

0.07

Correlation Coefficient

SINGAPORE AIRLINES  ORIX JREIT

Significant diversification

The 3 months correlation between SINGAPORE and ORIX is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding SINGAPORE AIRLINES and ORIX JREIT INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ORIX JREIT INC 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 ORIX JREIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ORIX JREIT INC has no effect on the direction of SINGAPORE AIRLINES i.e., SINGAPORE AIRLINES and ORIX JREIT go up and down completely randomly.

Pair Corralation between SINGAPORE AIRLINES and ORIX JREIT

Assuming the 90 days trading horizon SINGAPORE AIRLINES is expected to generate 0.95 times more return on investment than ORIX JREIT. However, SINGAPORE AIRLINES is 1.05 times less risky than ORIX JREIT. It trades about 0.22 of its potential returns per unit of risk. ORIX JREIT INC is currently generating about 0.0 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 Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SINGAPORE AIRLINES  vs.  ORIX JREIT INC

SINGAPORE AIRLINES

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SINGAPORE AIRLINES are ranked lower than 17 (%) 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.

ORIX JREIT INC

Risk-Adjusted Performance

Very Weak

Over the last 90 days ORIX JREIT INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ORIX JREIT is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with SINGAPORE AIRLINES and ORIX JREIT

The main advantage of trading using opposite SINGAPORE AIRLINES and ORIX JREIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINGAPORE AIRLINES position performs unexpectedly, ORIX JREIT 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 ORIX JREIT will offset losses from the drop in ORIX JREIT's long position.

The idea behind SINGAPORE AIRLINES and ORIX JREIT INC 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.