Correlation Between REGAL ASIAN and Casio Computer
Can any of the company-specific risk be diversified away by investing in both REGAL ASIAN and Casio Computer 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 Casio Computer 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 Casio Computer CoLtd, you can compare the effects of market volatilities on REGAL ASIAN and Casio Computer 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 Casio Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL ASIAN and Casio Computer.
Diversification Opportunities for REGAL ASIAN and Casio Computer
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between REGAL and Casio is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and Casio Computer CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Casio Computer CoLtd 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 Casio Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Casio Computer CoLtd has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and Casio Computer go up and down completely randomly.
Pair Corralation between REGAL ASIAN and Casio Computer
Assuming the 90 days trading horizon REGAL ASIAN INVESTMENTS is expected to under-perform the Casio Computer. But the stock apears to be less risky and, when comparing its historical volatility, REGAL ASIAN INVESTMENTS is 1.22 times less risky than Casio Computer. The stock trades about -0.2 of its potential returns per unit of risk. The Casio Computer CoLtd is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 674.00 in Casio Computer CoLtd on September 26, 2024 and sell it today you would earn a total of 113.00 from holding Casio Computer CoLtd or generate 16.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
REGAL ASIAN INVESTMENTS vs. Casio Computer CoLtd
Performance |
| Timeline |
| REGAL ASIAN INVESTMENTS |
| Casio Computer CoLtd |
REGAL ASIAN and Casio Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REGAL ASIAN and Casio Computer
The main advantage of trading using opposite REGAL ASIAN and Casio Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REGAL ASIAN position performs unexpectedly, Casio Computer 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 Casio Computer will offset losses from the drop in Casio Computer's long position.| REGAL ASIAN vs. MARKET VECTR RETAIL | REGAL ASIAN vs. INTERCONT HOTELS | REGAL ASIAN vs. Fast Retailing Co | REGAL ASIAN vs. Park Hotels Resorts |
| Casio Computer vs. Chuangs China Investments | Casio Computer vs. REGAL ASIAN INVESTMENTS | Casio Computer vs. Virtus Investment Partners | Casio Computer vs. Zijin Mining Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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