Correlation Between Deutsche Boerse and Singapore Exchange
Can any of the company-specific risk be diversified away by investing in both Deutsche Boerse and Singapore Exchange 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 Deutsche Boerse and Singapore Exchange into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutsche Boerse AG and Singapore Exchange Limited, you can compare the effects of market volatilities on Deutsche Boerse and Singapore Exchange 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 Deutsche Boerse with a short position of Singapore Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Boerse and Singapore Exchange.
Diversification Opportunities for Deutsche Boerse and Singapore Exchange
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Deutsche and Singapore is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Boerse AG and Singapore Exchange Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Exchange and Deutsche Boerse 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 Deutsche Boerse AG are associated (or correlated) with Singapore Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Exchange has no effect on the direction of Deutsche Boerse i.e., Deutsche Boerse and Singapore Exchange go up and down completely randomly.
Pair Corralation between Deutsche Boerse and Singapore Exchange
Assuming the 90 days horizon Deutsche Boerse AG is expected to generate 1.01 times more return on investment than Singapore Exchange. However, Deutsche Boerse is 1.01 times more volatile than Singapore Exchange Limited. It trades about 0.07 of its potential returns per unit of risk. Singapore Exchange Limited is currently generating about -0.14 per unit of risk. If you would invest 2,017 in Deutsche Boerse AG on January 25, 2024 and sell it today you would earn a total of 26.00 from holding Deutsche Boerse AG or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deutsche Boerse AG vs. Singapore Exchange Limited
Performance |
| Timeline |
| Deutsche Boerse AG |
| Singapore Exchange |
Deutsche Boerse and Singapore Exchange Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Boerse and Singapore Exchange
The main advantage of trading using opposite Deutsche Boerse and Singapore Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Boerse position performs unexpectedly, Singapore Exchange 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 Singapore Exchange will offset losses from the drop in Singapore Exchange's long position.| Deutsche Boerse vs. London Stock Exchange | Deutsche Boerse vs. Hong Kong Exchanges | Deutsche Boerse vs. Deutsche Brse AG | Deutsche Boerse vs. Singapore Exchange Limited |
| Singapore Exchange vs. Hong Kong Exchanges | Singapore Exchange vs. Singapore Exchange Ltd | Singapore Exchange vs. Deutsche Brse AG | Singapore Exchange vs. London Stock Exchange |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |