Correlation Between REGAL ASIAN and Lion One
Can any of the company-specific risk be diversified away by investing in both REGAL ASIAN and Lion One 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 Lion One 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 Lion One Metals, you can compare the effects of market volatilities on REGAL ASIAN and Lion One 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 Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL ASIAN and Lion One.
Diversification Opportunities for REGAL ASIAN and Lion One
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between REGAL and Lion is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and Lion One Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion One Metals 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 Lion One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion One Metals has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and Lion One go up and down completely randomly.
Pair Corralation between REGAL ASIAN and Lion One
Assuming the 90 days trading horizon REGAL ASIAN INVESTMENTS is expected to generate 0.43 times more return on investment than Lion One. However, REGAL ASIAN INVESTMENTS is 2.34 times less risky than Lion One. It trades about 0.08 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.19 per unit of risk. If you would invest 129.00 in REGAL ASIAN INVESTMENTS on August 28, 2024 and sell it today you would earn a total of 3.00 from holding REGAL ASIAN INVESTMENTS or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
REGAL ASIAN INVESTMENTS vs. Lion One Metals
Performance |
| Timeline |
| REGAL ASIAN INVESTMENTS |
| Lion One Metals |
REGAL ASIAN and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REGAL ASIAN and Lion One
The main advantage of trading using opposite REGAL ASIAN and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REGAL ASIAN position performs unexpectedly, Lion One 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 Lion One will offset losses from the drop in Lion One's long position.| REGAL ASIAN vs. Choice Hotels International | REGAL ASIAN vs. Meli Hotels International | REGAL ASIAN vs. InterContinental Hotels Group | REGAL ASIAN vs. METHODE ELECTRONICS |
| Lion One vs. Franco Nevada | Lion One vs. Agnico Eagle Mines | Lion One vs. Superior Plus Corp | Lion One vs. NMI Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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