Correlation Between Singapore Exchange and Otc Markets
Can any of the company-specific risk be diversified away by investing in both Singapore Exchange and Otc Markets 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 Otc Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singapore Exchange and Otc Markets Group, you can compare the effects of market volatilities on Singapore Exchange and Otc Markets 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 Otc Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Exchange and Otc Markets.
Diversification Opportunities for Singapore Exchange and Otc Markets
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Singapore and Otc is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Exchange Ltd and Otc Markets Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Otc Markets Group 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 are associated (or correlated) with Otc Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Otc Markets Group has no effect on the direction of Singapore Exchange i.e., Singapore Exchange and Otc Markets go up and down completely randomly.
Pair Corralation between Singapore Exchange and Otc Markets
Assuming the 90 days horizon Singapore Exchange is expected to generate 0.67 times more return on investment than Otc Markets. However, Singapore Exchange is 1.5 times less risky than Otc Markets. It trades about -0.09 of its potential returns per unit of risk. Otc Markets Group is currently generating about -0.09 per unit of risk. If you would invest 10,637 in Singapore Exchange on December 29, 2023 and sell it today you would lose (261.00) from holding Singapore Exchange or give up 2.45% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Singapore Exchange Ltd vs. Otc Markets Group
Performance |
Timeline |
Singapore Exchange |
Otc Markets Group |
Singapore Exchange and Otc Markets Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Singapore Exchange and Otc Markets
The main advantage of trading using opposite Singapore Exchange and Otc Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Exchange position performs unexpectedly, Otc Markets 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 Otc Markets will offset losses from the drop in Otc Markets' long position.Singapore Exchange vs. SP Global | Singapore Exchange vs. Intercontinental Exchange | Singapore Exchange vs. CME Group | Singapore Exchange vs. Moodys |
Otc Markets vs. Sun Life Financial | Otc Markets vs. Procter Gamble | Otc Markets vs. Bayview Acquisition Corp | Otc Markets vs. Ep Emerging Markets |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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