Correlation Between Singapore Exchange and Euronext
Can any of the company-specific risk be diversified away by investing in both Singapore Exchange and Euronext 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 Euronext 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 Euronext NV, you can compare the effects of market volatilities on Singapore Exchange and Euronext 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 Euronext. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Exchange and Euronext.
Diversification Opportunities for Singapore Exchange and Euronext
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Singapore and Euronext is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Exchange Ltd and Euronext NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euronext NV 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 Euronext. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euronext NV has no effect on the direction of Singapore Exchange i.e., Singapore Exchange and Euronext go up and down completely randomly.
Pair Corralation between Singapore Exchange and Euronext
Assuming the 90 days horizon Singapore Exchange Ltd is expected to generate 0.98 times more return on investment than Euronext. However, Singapore Exchange Ltd is 1.02 times less risky than Euronext. It trades about 0.07 of its potential returns per unit of risk. Euronext NV is currently generating about -0.15 per unit of risk. If you would invest 10,151 in Singapore Exchange Ltd on January 25, 2024 and sell it today you would earn a total of 120.00 from holding Singapore Exchange Ltd or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Exchange Ltd vs. Euronext NV
Performance |
| Timeline |
| Singapore Exchange |
| Euronext NV |
Singapore Exchange and Euronext Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Exchange and Euronext
The main advantage of trading using opposite Singapore Exchange and Euronext positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Exchange position performs unexpectedly, Euronext 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 Euronext will offset losses from the drop in Euronext's long position.| Singapore Exchange vs. TMX Group Limited | Singapore Exchange vs. Otc Markets Group | Singapore Exchange vs. Morningstar | Singapore Exchange vs. CME Group |
| Euronext vs. TMX Group Limited | Euronext vs. Otc Markets Group | Euronext vs. Morningstar | Euronext vs. CME Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |