Correlation Between Starwin Media and Genting Singapore

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

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

Diversification Opportunities for Starwin Media and Genting Singapore

0.0

Correlation Coefficient

Starwin Media  Genting Singapore

Pay attention - limited upside

The 3 months correlation between Starwin and Genting is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Starwin Media Holdings and Genting Singapore PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genting Singapore PLC and Starwin Media 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 Starwin Media Holdings are associated (or correlated) with Genting Singapore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genting Singapore PLC has no effect on the direction of Starwin Media i.e., Starwin Media and Genting Singapore go up and down completely randomly.

Pair Corralation between Starwin Media and Genting Singapore

Given the investment horizon of 90 days Starwin Media Holdings is expected to generate 4.51 times more return on investment than Genting Singapore. However, Starwin Media is 4.51 times more volatile than Genting Singapore PLC. It trades about 0.04 of its potential returns per unit of risk. Genting Singapore PLC is currently generating about 0.0 per unit of risk. If you would invest  0.01  in Starwin Media Holdings on October 9, 2024 and sell it today you would earn a total of  0.01  from holding Starwin Media Holdings or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	87.88%
Values	Daily Returns

Starwin Media Holdings  vs.  Genting Singapore PLC

Starwin Media Holdings

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Starwin Media Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Starwin Media is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Genting Singapore PLC

Risk-Adjusted Performance

0 of 100

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 uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Starwin Media and Genting Singapore

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

The idea behind Starwin Media Holdings and Genting Singapore PLC 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.