Correlation Between MOVIE GAMES and Regions Financial
Can any of the company-specific risk be diversified away by investing in both MOVIE GAMES and Regions Financial 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 MOVIE GAMES and Regions Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOVIE GAMES SA and Regions Financial, you can compare the effects of market volatilities on MOVIE GAMES and Regions Financial 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 MOVIE GAMES with a short position of Regions Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOVIE GAMES and Regions Financial.
Diversification Opportunities for MOVIE GAMES and Regions Financial
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MOVIE and Regions is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding MOVIE GAMES SA and Regions Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regions Financial and MOVIE GAMES 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 MOVIE GAMES SA are associated (or correlated) with Regions Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regions Financial has no effect on the direction of MOVIE GAMES i.e., MOVIE GAMES and Regions Financial go up and down completely randomly.
Pair Corralation between MOVIE GAMES and Regions Financial
Assuming the 90 days horizon MOVIE GAMES SA is expected to generate 3.03 times more return on investment than Regions Financial. However, MOVIE GAMES is 3.03 times more volatile than Regions Financial. It trades about 0.2 of its potential returns per unit of risk. Regions Financial is currently generating about 0.01 per unit of risk. If you would invest 356.00 in MOVIE GAMES SA on October 28, 2024 and sell it today you would earn a total of 66.00 from holding MOVIE GAMES SA or generate 18.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOVIE GAMES SA vs. Regions Financial
Performance |
| Timeline |
| MOVIE GAMES SA |
| Regions Financial |
MOVIE GAMES and Regions Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOVIE GAMES and Regions Financial
The main advantage of trading using opposite MOVIE GAMES and Regions Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOVIE GAMES position performs unexpectedly, Regions Financial 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 Regions Financial will offset losses from the drop in Regions Financial's long position.| MOVIE GAMES vs. Apple Inc | MOVIE GAMES vs. Apple Inc | MOVIE GAMES vs. Apple Inc | MOVIE GAMES vs. Apple Inc |
| Regions Financial vs. The PNC Financial | Regions Financial vs. Huntington Bancshares Incorporated | Regions Financial vs. KeyCorp |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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