Correlation Between Relx PLC and Singapore Press

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

Diversification Opportunities for Relx PLC and Singapore Press

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Relx and Singapore is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Relx PLC ADR and Singapore Press Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Press Holdings and Relx PLC 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 Relx PLC ADR are associated (or correlated) with Singapore Press. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Press Holdings has no effect on the direction of Relx PLC i.e., Relx PLC and Singapore Press go up and down completely randomly.

Pair Corralation between Relx PLC and Singapore Press

If you would invest (100.00) in Singapore Press Holdings on December 29, 2023 and sell it today you would earn a total of  100.00  from holding Singapore Press Holdings or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Relx PLC ADR  vs.  Singapore Press Holdings

 Performance 
       Timeline  
Relx PLC ADR 

Risk-Adjusted Performance

10 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Relx PLC ADR are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak essential indicators, Relx PLC may actually be approaching a critical reversion point that can send shares even higher in April 2024.
Singapore Press Holdings 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Singapore Press Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Singapore Press is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Relx PLC and Singapore Press Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Relx PLC and Singapore Press

The main advantage of trading using opposite Relx PLC and Singapore Press positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Relx PLC position performs unexpectedly, Singapore Press 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 Press will offset losses from the drop in Singapore Press' long position.
The idea behind Relx PLC ADR and Singapore Press Holdings 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.
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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