Correlation Between REGAL ASIAN and Lyft
Can any of the company-specific risk be diversified away by investing in both REGAL ASIAN and Lyft 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 Lyft 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 Lyft Inc, you can compare the effects of market volatilities on REGAL ASIAN and Lyft 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 Lyft. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL ASIAN and Lyft.
Diversification Opportunities for REGAL ASIAN and Lyft
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between REGAL and Lyft is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and Lyft Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyft Inc 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 Lyft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyft Inc has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and Lyft go up and down completely randomly.
Pair Corralation between REGAL ASIAN and Lyft
Assuming the 90 days trading horizon REGAL ASIAN INVESTMENTS is expected to generate 0.33 times more return on investment than Lyft. However, REGAL ASIAN INVESTMENTS is 3.0 times less risky than Lyft. It trades about 0.15 of its potential returns per unit of risk. Lyft Inc is currently generating about -0.03 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 Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
REGAL ASIAN INVESTMENTS vs. Lyft Inc
Performance |
| Timeline |
| REGAL ASIAN INVESTMENTS |
| Lyft Inc |
REGAL ASIAN and Lyft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REGAL ASIAN and Lyft
The main advantage of trading using opposite REGAL ASIAN and Lyft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REGAL ASIAN position performs unexpectedly, Lyft 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 Lyft will offset losses from the drop in Lyft's long position.| REGAL ASIAN vs. Ping An Insurance | REGAL ASIAN vs. Grupo Carso SAB | REGAL ASIAN vs. CARSALESCOM | REGAL ASIAN vs. GEELY AUTOMOBILE |
| Lyft vs. Lattice Semiconductor | Lyft vs. Semiconductor Manufacturing International | Lyft vs. ON Semiconductor | Lyft vs. VIVA WINE 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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