Correlation Between Genting Singapore and SkyWest

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

By analyzing existing cross correlation between Genting Singapore PLC and SkyWest, you can compare the effects of market volatilities on Genting Singapore and SkyWest 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 Genting Singapore with a short position of SkyWest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genting Singapore and SkyWest.

Diversification Opportunities for Genting Singapore and SkyWest

-0.02

Correlation Coefficient

Genting Singapore  SkyWest

Good diversification

The 3 months correlation between Genting and SkyWest is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Genting Singapore PLC and SkyWest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SkyWest and Genting Singapore 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 Genting Singapore PLC are associated (or correlated) with SkyWest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SkyWest has no effect on the direction of Genting Singapore i.e., Genting Singapore and SkyWest go up and down completely randomly.

Pair Corralation between Genting Singapore and SkyWest

Assuming the 90 days horizon Genting Singapore PLC is expected to generate 1.32 times more return on investment than SkyWest. However, Genting Singapore is 1.32 times more volatile than SkyWest. It trades about -0.06 of its potential returns per unit of risk. SkyWest is currently generating about -0.44 per unit of risk. If you would invest  2,746  in Genting Singapore PLC on December 5, 2024 and sell it today you would lose (111.00) from holding Genting Singapore PLC or give up 4.04% of portfolio value over 90 days.

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

Genting Singapore PLC  vs.  SkyWest

Genting Singapore PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Genting Singapore PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

SkyWest

Risk-Adjusted Performance

Very Weak

Over the last 90 days SkyWest has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Genting Singapore and SkyWest

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

The idea behind Genting Singapore PLC and SkyWest 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..