Correlation Between REGAL ASIAN and Fnac Darty
Can any of the company-specific risk be diversified away by investing in both REGAL ASIAN and Fnac Darty 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 REGAL ASIAN and Fnac Darty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REGAL ASIAN INVESTMENTS and Fnac Darty SA, you can compare the effects of market volatilities on REGAL ASIAN and Fnac Darty 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 REGAL ASIAN with a short position of Fnac Darty. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL ASIAN and Fnac Darty.
Diversification Opportunities for REGAL ASIAN and Fnac Darty
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between REGAL and Fnac is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and Fnac Darty SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fnac Darty SA and REGAL ASIAN 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 REGAL ASIAN INVESTMENTS are associated (or correlated) with Fnac Darty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fnac Darty SA has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and Fnac Darty go up and down completely randomly.
Pair Corralation between REGAL ASIAN and Fnac Darty
Assuming the 90 days trading horizon REGAL ASIAN INVESTMENTS is expected to under-perform the Fnac Darty. But the stock apears to be less risky and, when comparing its historical volatility, REGAL ASIAN INVESTMENTS is 2.23 times less risky than Fnac Darty. The stock trades about -0.38 of its potential returns per unit of risk. The Fnac Darty SA is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,615 in Fnac Darty SA on September 13, 2024 and sell it today you would earn a total of 275.00 from holding Fnac Darty SA or generate 10.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
REGAL ASIAN INVESTMENTS vs. Fnac Darty SA
Performance |
| Timeline |
| REGAL ASIAN INVESTMENTS |
| Fnac Darty SA |
REGAL ASIAN and Fnac Darty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REGAL ASIAN and Fnac Darty
The main advantage of trading using opposite REGAL ASIAN and Fnac Darty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REGAL ASIAN position performs unexpectedly, Fnac Darty 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 Fnac Darty will offset losses from the drop in Fnac Darty's long position.| REGAL ASIAN vs. Apple Inc | REGAL ASIAN vs. Apple Inc | REGAL ASIAN vs. Apple Inc | REGAL ASIAN vs. Apple Inc |
| Fnac Darty vs. Rayonier Advanced Materials | Fnac Darty vs. Coor Service Management | Fnac Darty vs. Corporate Travel Management | Fnac Darty vs. The Yokohama Rubber |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |