Correlation Between Value Line and Singapore Exchange
Can any of the company-specific risk be diversified away by investing in both Value Line 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 Value Line and Singapore Exchange into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Value Line and Singapore Exchange Ltd, you can compare the effects of market volatilities on Value Line 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 Value Line with a short position of Singapore Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of Value Line and Singapore Exchange.
Diversification Opportunities for Value Line and Singapore Exchange
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Value and Singapore is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Value Line and Singapore Exchange Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Exchange and Value Line 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 Value Line 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 Value Line i.e., Value Line and Singapore Exchange go up and down completely randomly.
Pair Corralation between Value Line and Singapore Exchange
Given the investment horizon of 90 days Value Line is expected to under-perform the Singapore Exchange. In addition to that, Value Line is 1.92 times more volatile than Singapore Exchange Ltd. It trades about -0.1 of its total potential returns per unit of risk. Singapore Exchange Ltd is currently generating about 0.03 per unit of volatility. If you would invest 10,151 in Singapore Exchange Ltd on January 25, 2024 and sell it today you would earn a total of 54.00 from holding Singapore Exchange Ltd or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Value Line vs. Singapore Exchange Ltd
Performance |
| Timeline |
| Value Line |
| Singapore Exchange |
Value Line and Singapore Exchange Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Value Line and Singapore Exchange
The main advantage of trading using opposite Value Line and Singapore Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Value Line 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.| Value Line vs. Dun Bradstreet Holdings | Value Line vs. FactSet Research Systems | Value Line vs. Moodys | Value Line vs. MSCI Inc |
| Singapore Exchange vs. Singapore Exchange Limited | Singapore Exchange vs. TMX Group Limited | Singapore Exchange vs. London Stock Exchange | Singapore Exchange vs. Otc Markets 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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