Correlation Between SINGAPORE AIRLINES and GREENX METALS

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

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

Diversification Opportunities for SINGAPORE AIRLINES and GREENX METALS

-0.18

Correlation Coefficient

SINGAPORE AIRLINES  GREENX METALS

Good diversification

The 3 months correlation between SINGAPORE and GREENX is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding SINGAPORE AIRLINES and GREENX METALS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREENX METALS LTD 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 GREENX METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GREENX METALS LTD has no effect on the direction of SINGAPORE AIRLINES i.e., SINGAPORE AIRLINES and GREENX METALS go up and down completely randomly.

Pair Corralation between SINGAPORE AIRLINES and GREENX METALS

Assuming the 90 days trading horizon SINGAPORE AIRLINES is expected to generate 0.24 times more return on investment than GREENX METALS. However, SINGAPORE AIRLINES is 4.12 times less risky than GREENX METALS. It trades about 0.08 of its potential returns per unit of risk. GREENX METALS LTD is currently generating about -0.02 per unit of risk. If you would invest  430.00  in SINGAPORE AIRLINES on October 23, 2024 and sell it today you would earn a total of  20.00  from holding SINGAPORE AIRLINES or generate 4.65% 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.  GREENX METALS LTD

SINGAPORE AIRLINES

Risk-Adjusted Performance

6 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SINGAPORE AIRLINES are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, SINGAPORE AIRLINES is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

GREENX METALS LTD

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with SINGAPORE AIRLINES and GREENX METALS

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

The idea behind SINGAPORE AIRLINES and GREENX METALS LTD 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.