Capitaland De-Noised
Residuals (Noise) of Capitaland
Continuous Wavelet Transform of Hyflux
Hyflux De-Noised
Residuals (noise) of Hyflux
The Inexplicable Jardine Cycle & Carriage
Using Wavelets, we take a look at three Blue-Chips of the Singapore Exchange and try to explain why even long term holders may lose patience with certain Blue-Chips. Capitaland and Jardine Cycle & Carriage are components of the 30-stock Straits Times Index of Singapore. Hyflux used to be a component too, I think. The data here is for approximately 5 years [see number of days indicated at the top of each chart]. Before you begin: (1) you may want to read more in general about Wavelets from the other posts on this Blog (2) The Y-axis represents 'scale' on wavelets, the higher the longer term. (3) Patterns that you see are real. They are fractal self-similarities if they extend up the image (3) The higher on the Y-axis, the bigger the picture i.e the low frequency approximations while at the bottom are the high frequency details.
Residuals (Noise) of Capitaland
Continuous Wavelet Transform of Hyflux
Hyflux De-Noised
Residuals (noise) of Hyflux
The Inexplicable Jardine Cycle & Carriage
Using Wavelets, we take a look at three Blue-Chips of the Singapore Exchange and try to explain why even long term holders may lose patience with certain Blue-Chips. Capitaland and Jardine Cycle & Carriage are components of the 30-stock Straits Times Index of Singapore. Hyflux used to be a component too, I think. The data here is for approximately 5 years [see number of days indicated at the top of each chart]. Before you begin: (1) you may want to read more in general about Wavelets from the other posts on this Blog (2) The Y-axis represents 'scale' on wavelets, the higher the longer term. (3) Patterns that you see are real. They are fractal self-similarities if they extend up the image (3) The higher on the Y-axis, the bigger the picture i.e the low frequency approximations while at the bottom are the high frequency details. And if you look at the charts, Capitaland and Hyflux have been going nowhere, despite the strong fundamentals. Hyflux is one of the top water technology Companies in Asia, and Capitaland is South-East Asia's largest property developer. The notes on each image are self-explanatory. To summarize: As the years went by, shorter term players began to lose interest in Capitaland and Hyflux, and now there is less and less interest in them. Hyflux does have higher 'turnover' than Capitaland, but these are on the longer term scale. Hyflux is a totally different animal from Capitaland, i.e. its holders are of a different type. The autocorrelation level of Hyflux is very high compared to most other stocks which means that it is more suitable for technical analysis (of the longer term kind, maybe using weekly data). As for Jardine, its Continuous Wavelet Transform shows it to have basically no pattern of any kind. I don't know what to say abgout it. Its most common use as noted by many Singapore traders is as something to throw in a few seconds before the closing bell, to affect the ST Index one way or another. Will Hyflux and Capitaland change their 'personalities'? Not unless they draw more interest from shorter term players.
