Correlation Between SENKO GROUP and SINGAPORE POST

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

By analyzing existing cross correlation between SENKO GROUP HOLDINGS and SINGAPORE POST, you can compare the effects of market volatilities on SENKO GROUP and SINGAPORE POST 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 SENKO GROUP with a short position of SINGAPORE POST. Check out your portfolio center. Please also check ongoing floating volatility patterns of SENKO GROUP and SINGAPORE POST.

Diversification Opportunities for SENKO GROUP and SINGAPORE POST

0.58

Correlation Coefficient

SENKO GROUP  SINGAPORE POST

Very weak diversification

The 3 months correlation between SENKO and SINGAPORE is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding SENKO GROUP HOLDINGS and SINGAPORE POST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE POST and SENKO GROUP 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 SENKO GROUP HOLDINGS are associated (or correlated) with SINGAPORE POST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINGAPORE POST has no effect on the direction of SENKO GROUP i.e., SENKO GROUP and SINGAPORE POST go up and down completely randomly.

Pair Corralation between SENKO GROUP and SINGAPORE POST

Assuming the 90 days horizon SENKO GROUP HOLDINGS is expected to generate 0.57 times more return on investment than SINGAPORE POST. However, SENKO GROUP HOLDINGS is 1.75 times less risky than SINGAPORE POST. It trades about 0.05 of its potential returns per unit of risk. SINGAPORE POST is currently generating about 0.02 per unit of risk. If you would invest  670.00  in SENKO GROUP HOLDINGS on October 14, 2024 and sell it today you would earn a total of  215.00  from holding SENKO GROUP HOLDINGS or generate 32.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

SENKO GROUP HOLDINGS  vs.  SINGAPORE POST

SENKO GROUP HOLDINGS

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SENKO GROUP HOLDINGS are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SENKO GROUP may actually be approaching a critical reversion point that can send shares even higher in February 2025.

SINGAPORE POST

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SINGAPORE POST are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, SINGAPORE POST may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with SENKO GROUP and SINGAPORE POST

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

The idea behind SENKO GROUP HOLDINGS and SINGAPORE POST 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.

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 Bonds Directory module to find actively traded corporate debentures issued by US companies.