STI’s Recent Risk-Adjusted Returns Beat Regional Benchmarks
The STI, in its weighted form, currently maintains lower historical volatility than benchmarks of other financial centres across the Asia Pacific. For the past 180 trading days historical volatility of the STI was 8.5%. A key contributing factor includes the geographical diversity of revenue associated with the 30 STI stocks. However the simple average of the historical volatilities for each of the 30 STI stocks over the past 180 days at 18.9% is more than double the Index’s corresponding volatility of 8.5%. The three best performers on a risk-to-return basis were Yangzijiang Shipbuilding Holdings, Singapore Airlines, and then thirdly, similar ratios Jardine Matheson Holdings and Singapore Tech Engineering.