Correlation Between VIRGIN WINES and REGAL ASIAN
Can any of the company-specific risk be diversified away by investing in both VIRGIN WINES and REGAL ASIAN 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 VIRGIN WINES and REGAL ASIAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIRGIN WINES UK and REGAL ASIAN INVESTMENTS, you can compare the effects of market volatilities on VIRGIN WINES and REGAL ASIAN 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 VIRGIN WINES with a short position of REGAL ASIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIRGIN WINES and REGAL ASIAN.
Diversification Opportunities for VIRGIN WINES and REGAL ASIAN
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VIRGIN and REGAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VIRGIN WINES UK and REGAL ASIAN INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REGAL ASIAN INVESTMENTS and VIRGIN WINES 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 VIRGIN WINES UK are associated (or correlated) with REGAL ASIAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REGAL ASIAN INVESTMENTS has no effect on the direction of VIRGIN WINES i.e., VIRGIN WINES and REGAL ASIAN go up and down completely randomly.
Pair Corralation between VIRGIN WINES and REGAL ASIAN
If you would invest 112.00 in REGAL ASIAN INVESTMENTS on September 1, 2024 and sell it today you would earn a total of 14.00 from holding REGAL ASIAN INVESTMENTS or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.48% |
| Values | Daily Returns |
VIRGIN WINES UK vs. REGAL ASIAN INVESTMENTS
Performance |
| Timeline |
| VIRGIN WINES UK |
| REGAL ASIAN INVESTMENTS |
VIRGIN WINES and REGAL ASIAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIRGIN WINES and REGAL ASIAN
The main advantage of trading using opposite VIRGIN WINES and REGAL ASIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIRGIN WINES position performs unexpectedly, REGAL ASIAN 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 REGAL ASIAN will offset losses from the drop in REGAL ASIAN's long position.| VIRGIN WINES vs. LANSON BCC INH EO | VIRGIN WINES vs. Superior Plus Corp | VIRGIN WINES vs. NMI Holdings | VIRGIN WINES vs. Origin Agritech |
| REGAL ASIAN vs. PennantPark Investment | REGAL ASIAN vs. SEI INVESTMENTS | REGAL ASIAN vs. MARKET VECTR RETAIL | REGAL ASIAN vs. Strategic Investments AS |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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