Correlation Between SINGAPORE AIRLINES and Internet Thailand

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

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

Diversification Opportunities for SINGAPORE AIRLINES and Internet Thailand

-0.34

Correlation Coefficient

SINGAPORE AIRLINES  Internet Thailand

Very good diversification

The 3 months correlation between SINGAPORE and Internet is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding SINGAPORE AIRLINES and Internet Thailand PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Internet Thailand PCL 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 Internet Thailand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Internet Thailand PCL has no effect on the direction of SINGAPORE AIRLINES i.e., SINGAPORE AIRLINES and Internet Thailand go up and down completely randomly.

Pair Corralation between SINGAPORE AIRLINES and Internet Thailand

Assuming the 90 days trading horizon SINGAPORE AIRLINES is expected to generate 0.2 times more return on investment than Internet Thailand. However, SINGAPORE AIRLINES is 4.97 times less risky than Internet Thailand. It trades about 0.06 of its potential returns per unit of risk. Internet Thailand PCL is currently generating about -0.05 per unit of risk. If you would invest  452.00  in SINGAPORE AIRLINES on December 26, 2024 and sell it today you would earn a total of  14.00  from holding SINGAPORE AIRLINES or generate 3.1% 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.  Internet Thailand PCL

SINGAPORE AIRLINES

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SINGAPORE AIRLINES are ranked lower than 4 (%) 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 current stock price uproar, may contribute to short-horizon losses for the private investors.

Internet Thailand PCL

Risk-Adjusted Performance

Very Weak

Over the last 90 days Internet Thailand PCL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain 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 SINGAPORE AIRLINES and Internet Thailand

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

The idea behind SINGAPORE AIRLINES and Internet Thailand PCL 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.