Correlation Between Rayonier and Singapore Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both Rayonier and Singapore Telecommunicatio 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 Rayonier and Singapore Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rayonier and Singapore Telecommunications Limited, you can compare the effects of market volatilities on Rayonier and Singapore Telecommunicatio 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 Rayonier with a short position of Singapore Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rayonier and Singapore Telecommunicatio.
Diversification Opportunities for Rayonier and Singapore Telecommunicatio
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rayonier and Singapore is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Rayonier and Singapore Telecommunications L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Telecommunicatio and Rayonier 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 Rayonier are associated (or correlated) with Singapore Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Telecommunicatio has no effect on the direction of Rayonier i.e., Rayonier and Singapore Telecommunicatio go up and down completely randomly.
Pair Corralation between Rayonier and Singapore Telecommunicatio
Considering the 90-day investment horizon Rayonier is expected to under-perform the Singapore Telecommunicatio. But the stock apears to be less risky and, when comparing its historical volatility, Rayonier is 1.7 times less risky than Singapore Telecommunicatio. The stock trades about -0.14 of its potential returns per unit of risk. The Singapore Telecommunications Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 342.00 in Singapore Telecommunications Limited on September 6, 2025 and sell it today you would earn a total of 20.00 from holding Singapore Telecommunications Limited or generate 5.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rayonier vs. Singapore Telecommunications L
Performance |
| Timeline |
| Rayonier |
| Singapore Telecommunicatio |
Rayonier and Singapore Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rayonier and Singapore Telecommunicatio
The main advantage of trading using opposite Rayonier and Singapore Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rayonier position performs unexpectedly, Singapore Telecommunicatio 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 Telecommunicatio will offset losses from the drop in Singapore Telecommunicatio's long position.| Rayonier vs. Pintec Technology Holdings | Rayonier vs. Casio Computer Co | Rayonier vs. ePlay Digital | Rayonier vs. Amkor Technology |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |