Correlation Between SmarTone Telecommunicatio and Singapore Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both SmarTone Telecommunicatio 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 SmarTone Telecommunicatio and Singapore Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SmarTone Telecommunications Holdings and Singapore Telecommunications Limited, you can compare the effects of market volatilities on SmarTone Telecommunicatio 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 SmarTone Telecommunicatio with a short position of Singapore Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of SmarTone Telecommunicatio and Singapore Telecommunicatio.
Diversification Opportunities for SmarTone Telecommunicatio and Singapore Telecommunicatio
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SmarTone and Singapore is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding SmarTone Telecommunications Ho and Singapore Telecommunications L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Telecommunicatio and SmarTone Telecommunicatio 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 SmarTone Telecommunications Holdings 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 SmarTone Telecommunicatio i.e., SmarTone Telecommunicatio and Singapore Telecommunicatio go up and down completely randomly.
Pair Corralation between SmarTone Telecommunicatio and Singapore Telecommunicatio
Assuming the 90 days horizon SmarTone Telecommunicatio is expected to generate 1.56 times less return on investment than Singapore Telecommunicatio. But when comparing it to its historical volatility, SmarTone Telecommunications Holdings is 2.02 times less risky than Singapore Telecommunicatio. It trades about 0.12 of its potential returns per unit of risk. Singapore Telecommunications Limited is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 276.00 in Singapore Telecommunications Limited on August 16, 2025 and sell it today you would earn a total of 33.00 from holding Singapore Telecommunications Limited or generate 11.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SmarTone Telecommunications Ho vs. Singapore Telecommunications L
Performance |
| Timeline |
| SmarTone Telecommunicatio |
| Singapore Telecommunicatio |
SmarTone Telecommunicatio and Singapore Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SmarTone Telecommunicatio and Singapore Telecommunicatio
The main advantage of trading using opposite SmarTone Telecommunicatio and Singapore Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SmarTone Telecommunicatio 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.| SmarTone Telecommunicatio vs. Commercial Vehicle Group | SmarTone Telecommunicatio vs. CHINA TONTINE WINES | SmarTone Telecommunicatio vs. SCANSOURCE | SmarTone Telecommunicatio vs. KOOL2PLAY SA ZY |
| Singapore Telecommunicatio vs. China Mobile Limited | Singapore Telecommunicatio vs. SIVERS SEMICONDUCTORS AB | Singapore Telecommunicatio vs. NorAm Drilling AS | Singapore Telecommunicatio vs. BANK HANDLOWY |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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