Correlation Between Singapore Exchange and Quotemedia

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Can any of the company-specific risk be diversified away by investing in both Singapore Exchange and Quotemedia 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 Quotemedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singapore Exchange and Quotemedia, you can compare the effects of market volatilities on Singapore Exchange and Quotemedia 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 Quotemedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Exchange and Quotemedia.

Diversification Opportunities for Singapore Exchange and Quotemedia

0.17
  Correlation Coefficient

Average diversification

The 3 months correlation between Singapore and Quotemedia is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Exchange Ltd and Quotemedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quotemedia 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 Quotemedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quotemedia has no effect on the direction of Singapore Exchange i.e., Singapore Exchange and Quotemedia go up and down completely randomly.

Pair Corralation between Singapore Exchange and Quotemedia

Assuming the 90 days horizon Singapore Exchange is expected to generate 27.68 times less return on investment than Quotemedia. But when comparing it to its historical volatility, Singapore Exchange is 5.73 times less risky than Quotemedia. It trades about 0.01 of its potential returns per unit of risk. Quotemedia is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  19.00  in Quotemedia on December 30, 2023 and sell it today you would earn a total of  3.00  from holding Quotemedia or generate 15.79% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Singapore Exchange Ltd  vs.  Quotemedia

 Performance 
       Timeline  
Singapore Exchange 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Singapore Exchange has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Quotemedia 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Quotemedia has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Quotemedia is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Singapore Exchange and Quotemedia Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Singapore Exchange and Quotemedia

The main advantage of trading using opposite Singapore Exchange and Quotemedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Exchange position performs unexpectedly, Quotemedia 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 Quotemedia will offset losses from the drop in Quotemedia's long position.
The idea behind Singapore Exchange and Quotemedia 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.
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

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