Correlation Between SINGAPORE AIRLINES and Entain Plc
Can any of the company-specific risk be diversified away by investing in both SINGAPORE AIRLINES and Entain Plc 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 Entain Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SINGAPORE AIRLINES and Entain Plc, you can compare the effects of market volatilities on SINGAPORE AIRLINES and Entain Plc 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 Entain Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINGAPORE AIRLINES and Entain Plc.
Diversification Opportunities for SINGAPORE AIRLINES and Entain Plc
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between SINGAPORE and Entain is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding SINGAPORE AIRLINES and Entain Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entain Plc 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 Entain Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entain Plc has no effect on the direction of SINGAPORE AIRLINES i.e., SINGAPORE AIRLINES and Entain Plc go up and down completely randomly.
Pair Corralation between SINGAPORE AIRLINES and Entain Plc
Assuming the 90 days trading horizon SINGAPORE AIRLINES is expected to generate 0.33 times more return on investment than Entain Plc. However, SINGAPORE AIRLINES is 3.02 times less risky than Entain Plc. It trades about 0.04 of its potential returns per unit of risk. Entain Plc is currently generating about 0.0 per unit of risk. If you would invest 438.00 in SINGAPORE AIRLINES on October 25, 2024 and sell it today you would earn a total of 8.00 from holding SINGAPORE AIRLINES or generate 1.83% 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. Entain Plc
Performance |
Timeline |
SINGAPORE AIRLINES |
Entain Plc |
SINGAPORE AIRLINES and Entain Plc Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SINGAPORE AIRLINES and Entain Plc
The main advantage of trading using opposite SINGAPORE AIRLINES and Entain Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINGAPORE AIRLINES position performs unexpectedly, Entain Plc 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 Entain Plc will offset losses from the drop in Entain Plc's long position.SINGAPORE AIRLINES vs. SAN MIGUEL BREWERY | SINGAPORE AIRLINES vs. Apollo Medical Holdings | SINGAPORE AIRLINES vs. CVR Medical Corp | SINGAPORE AIRLINES vs. Suntory Beverage Food |
Entain Plc vs. PURETECH HEALTH PLC | Entain Plc vs. Singapore Telecommunications Limited | Entain Plc vs. PDS Biotechnology Corp | Entain Plc vs. Cardinal Health |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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