Correlation Between AGRICULTBK HADR/25 and Singapore Reinsurance

Can any of the company-specific risk be diversified away by investing in both AGRICULTBK HADR/25 and Singapore Reinsurance 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 AGRICULTBK HADR/25 and Singapore Reinsurance into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AGRICULTBK HADR25 YC and Singapore Reinsurance, you can compare the effects of market volatilities on AGRICULTBK HADR/25 and Singapore Reinsurance 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 AGRICULTBK HADR/25 with a short position of Singapore Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICULTBK HADR/25 and Singapore Reinsurance.

Diversification Opportunities for AGRICULTBK HADR/25 and Singapore Reinsurance

-0.73

Correlation Coefficient

AGRICULTBK HADR/25  Singapore Reinsurance

Pay attention - limited upside

The 3 months correlation between AGRICULTBK and Singapore is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding AGRICULTBK HADR25 YC and Singapore Reinsurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Reinsurance and AGRICULTBK HADR/25 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 AGRICULTBK HADR25 YC are associated (or correlated) with Singapore Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Reinsurance has no effect on the direction of AGRICULTBK HADR/25 i.e., AGRICULTBK HADR/25 and Singapore Reinsurance go up and down completely randomly.

Pair Corralation between AGRICULTBK HADR/25 and Singapore Reinsurance

Assuming the 90 days trading horizon AGRICULTBK HADR25 YC is expected to generate 0.61 times more return on investment than Singapore Reinsurance. However, AGRICULTBK HADR25 YC is 1.63 times less risky than Singapore Reinsurance. It trades about 0.11 of its potential returns per unit of risk. Singapore Reinsurance is currently generating about -0.07 per unit of risk. If you would invest  1,278  in AGRICULTBK HADR25 YC on December 25, 2024 and sell it today you would earn a total of  142.00  from holding AGRICULTBK HADR25 YC or generate 11.11% return on investment over 90 days.

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

AGRICULTBK HADR25 YC  vs.  Singapore Reinsurance

AGRICULTBK HADR/25

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AGRICULTBK HADR25 YC are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, AGRICULTBK HADR/25 may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Singapore Reinsurance

Risk-Adjusted Performance

Very Weak

Over the last 90 days Singapore Reinsurance has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with AGRICULTBK HADR/25 and Singapore Reinsurance

The main advantage of trading using opposite AGRICULTBK HADR/25 and Singapore Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICULTBK HADR/25 position performs unexpectedly, Singapore Reinsurance 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 Reinsurance will offset losses from the drop in Singapore Reinsurance's long position.

The idea behind AGRICULTBK HADR25 YC and Singapore Reinsurance 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.