Correlation Between Singapore Exchange and ASX Limited
Can any of the company-specific risk be diversified away by investing in both Singapore Exchange and ASX Limited 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 Exchange and ASX Limited into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singapore Exchange Ltd and ASX Limited ADR, you can compare the effects of market volatilities on Singapore Exchange and ASX Limited 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 Exchange with a short position of ASX Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Exchange and ASX Limited.
Diversification Opportunities for Singapore Exchange and ASX Limited
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Singapore and ASX is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Exchange Ltd and ASX Limited ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASX Limited ADR and Singapore Exchange 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 Exchange Ltd are associated (or correlated) with ASX Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASX Limited ADR has no effect on the direction of Singapore Exchange i.e., Singapore Exchange and ASX Limited go up and down completely randomly.
Pair Corralation between Singapore Exchange and ASX Limited
If you would invest 9,918 in Singapore Exchange Ltd on January 24, 2024 and sell it today you would earn a total of 287.00 from holding Singapore Exchange Ltd or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Singapore Exchange Ltd vs. ASX Limited ADR
Performance |
| Timeline |
| Singapore Exchange |
| ASX Limited ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Singapore Exchange and ASX Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Exchange and ASX Limited
The main advantage of trading using opposite Singapore Exchange and ASX Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Exchange position performs unexpectedly, ASX Limited 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 ASX Limited will offset losses from the drop in ASX Limited's long position.| Singapore Exchange vs. Singapore Exchange Limited | Singapore Exchange vs. TMX Group Limited | Singapore Exchange vs. London Stock Exchange | Singapore Exchange vs. Otc Markets Group |
| ASX Limited vs. Deutsche Boerse AG | ASX Limited vs. Japan Exchange Group | ASX Limited vs. CochLear Ltd ADR | ASX Limited vs. Wesfarmers Ltd ADR |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |