Correlation Between SINGAPORE AIRLINES and Wenzhou Kangning

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

Diversification Opportunities for SINGAPORE AIRLINES and Wenzhou Kangning

-0.02
  Correlation Coefficient

Good diversification

The 3 months correlation between SINGAPORE and Wenzhou is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding SINGAPORE AIRLINES and Wenzhou Kangning Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wenzhou Kangning Hospital and SINGAPORE AIRLINES 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 AIRLINES are associated (or correlated) with Wenzhou Kangning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wenzhou Kangning Hospital has no effect on the direction of SINGAPORE AIRLINES i.e., SINGAPORE AIRLINES and Wenzhou Kangning go up and down completely randomly.

Pair Corralation between SINGAPORE AIRLINES and Wenzhou Kangning

Assuming the 90 days trading horizon SINGAPORE AIRLINES is expected to generate 0.45 times more return on investment than Wenzhou Kangning. However, SINGAPORE AIRLINES is 2.21 times less risky than Wenzhou Kangning. It trades about 0.0 of its potential returns per unit of risk. Wenzhou Kangning Hospital is currently generating about -0.01 per unit of risk. If you would invest  434.00  in SINGAPORE AIRLINES on September 3, 2025 and sell it today you would lose (8.00) from holding SINGAPORE AIRLINES or give up 1.84% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

SINGAPORE AIRLINES  vs.  Wenzhou Kangning Hospital

 Performance 
       Timeline  
SINGAPORE AIRLINES 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days SINGAPORE AIRLINES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, SINGAPORE AIRLINES is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
Wenzhou Kangning Hospital 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Wenzhou Kangning Hospital are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Wenzhou Kangning unveiled solid returns over the last few months and may actually be approaching a breakup point.

SINGAPORE AIRLINES and Wenzhou Kangning Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SINGAPORE AIRLINES and Wenzhou Kangning

The main advantage of trading using opposite SINGAPORE AIRLINES and Wenzhou Kangning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINGAPORE AIRLINES position performs unexpectedly, Wenzhou Kangning 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 Wenzhou Kangning will offset losses from the drop in Wenzhou Kangning's long position.
The idea behind SINGAPORE AIRLINES and Wenzhou Kangning Hospital 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

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