Correlation Between REGAL ASIAN and Altair Engineering
Can any of the company-specific risk be diversified away by investing in both REGAL ASIAN and Altair Engineering 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 Altair Engineering 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 Altair Engineering, you can compare the effects of market volatilities on REGAL ASIAN and Altair Engineering 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 Altair Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL ASIAN and Altair Engineering.
Diversification Opportunities for REGAL ASIAN and Altair Engineering
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between REGAL and Altair is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and Altair Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altair Engineering 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 Altair Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altair Engineering has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and Altair Engineering go up and down completely randomly.
Pair Corralation between REGAL ASIAN and Altair Engineering
Assuming the 90 days trading horizon REGAL ASIAN INVESTMENTS is expected to generate 2.42 times more return on investment than Altair Engineering. However, REGAL ASIAN is 2.42 times more volatile than Altair Engineering. It trades about 0.15 of its potential returns per unit of risk. Altair Engineering is currently generating about -0.08 per unit of risk. If you would invest 120.00 in REGAL ASIAN INVESTMENTS on December 4, 2024 and sell it today you would earn a total of 5.00 from holding REGAL ASIAN INVESTMENTS or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
REGAL ASIAN INVESTMENTS vs. Altair Engineering
Performance |
| Timeline |
| REGAL ASIAN INVESTMENTS |
| Altair Engineering |
REGAL ASIAN and Altair Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REGAL ASIAN and Altair Engineering
The main advantage of trading using opposite REGAL ASIAN and Altair Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REGAL ASIAN position performs unexpectedly, Altair Engineering 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 Altair Engineering will offset losses from the drop in Altair Engineering's long position.| REGAL ASIAN vs. Ping An Insurance | REGAL ASIAN vs. Grupo Carso SAB | REGAL ASIAN vs. CARSALESCOM | REGAL ASIAN vs. GEELY AUTOMOBILE |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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