Correlation Between Singapore Telecommunicatio and CHRYSALIS INVESTMENTS

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

By analyzing existing cross correlation between Singapore Telecommunications Limited and CHRYSALIS INVESTMENTS LTD, you can compare the effects of market volatilities on Singapore Telecommunicatio and CHRYSALIS INVESTMENTS 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 Telecommunicatio with a short position of CHRYSALIS INVESTMENTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Telecommunicatio and CHRYSALIS INVESTMENTS.

Diversification Opportunities for Singapore Telecommunicatio and CHRYSALIS INVESTMENTS

0.17

Correlation Coefficient

Singapore Telecommunicatio  CHRYSALIS INVESTMENTS

Average diversification

The 3 months correlation between Singapore and CHRYSALIS is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Telecommunications L and CHRYSALIS INVESTMENTS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHRYSALIS INVESTMENTS LTD and Singapore Telecommunicatio 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 Telecommunications Limited are associated (or correlated) with CHRYSALIS INVESTMENTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHRYSALIS INVESTMENTS LTD has no effect on the direction of Singapore Telecommunicatio i.e., Singapore Telecommunicatio and CHRYSALIS INVESTMENTS go up and down completely randomly.

Pair Corralation between Singapore Telecommunicatio and CHRYSALIS INVESTMENTS

Assuming the 90 days trading horizon Singapore Telecommunications Limited is expected to generate 0.84 times more return on investment than CHRYSALIS INVESTMENTS. However, Singapore Telecommunications Limited is 1.19 times less risky than CHRYSALIS INVESTMENTS. It trades about 0.12 of its potential returns per unit of risk. CHRYSALIS INVESTMENTS LTD is currently generating about -0.06 per unit of risk. If you would invest  219.00  in Singapore Telecommunications Limited on December 11, 2024 and sell it today you would earn a total of  16.00  from holding Singapore Telecommunications Limited or generate 7.31% return on investment over 90 days.

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

Singapore Telecommunications L  vs.  CHRYSALIS INVESTMENTS LTD

Singapore Telecommunicatio

Risk-Adjusted Performance

OK

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

CHRYSALIS INVESTMENTS LTD

Risk-Adjusted Performance

Very Weak

Over the last 90 days CHRYSALIS INVESTMENTS LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, CHRYSALIS INVESTMENTS 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 Telecommunicatio and CHRYSALIS INVESTMENTS

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

The idea behind Singapore Telecommunications Limited and CHRYSALIS INVESTMENTS 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.

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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.