Correlation Between REGAL ASIAN and STANLEY ELECTRIC
Can any of the company-specific risk be diversified away by investing in both REGAL ASIAN and STANLEY ELECTRIC 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 STANLEY ELECTRIC 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 STANLEY ELECTRIC CO, you can compare the effects of market volatilities on REGAL ASIAN and STANLEY ELECTRIC 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 STANLEY ELECTRIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL ASIAN and STANLEY ELECTRIC.
Diversification Opportunities for REGAL ASIAN and STANLEY ELECTRIC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between REGAL and STANLEY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and STANLEY ELECTRIC CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANLEY ELECTRIC 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 STANLEY ELECTRIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANLEY ELECTRIC has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and STANLEY ELECTRIC go up and down completely randomly.
Pair Corralation between REGAL ASIAN and STANLEY ELECTRIC
If you would invest 109.00 in REGAL ASIAN INVESTMENTS on September 2, 2024 and sell it today you would earn a total of 16.00 from holding REGAL ASIAN INVESTMENTS or generate 14.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
REGAL ASIAN INVESTMENTS vs. STANLEY ELECTRIC CO
Performance |
| Timeline |
| REGAL ASIAN INVESTMENTS |
| STANLEY ELECTRIC |
REGAL ASIAN and STANLEY ELECTRIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REGAL ASIAN and STANLEY ELECTRIC
The main advantage of trading using opposite REGAL ASIAN and STANLEY ELECTRIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REGAL ASIAN position performs unexpectedly, STANLEY ELECTRIC 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 STANLEY ELECTRIC will offset losses from the drop in STANLEY ELECTRIC's long position.| REGAL ASIAN vs. Apple Inc | REGAL ASIAN vs. Apple Inc | REGAL ASIAN vs. Apple Inc | REGAL ASIAN vs. Apple Inc |
| STANLEY ELECTRIC vs. IMPERIAL TOBACCO | STANLEY ELECTRIC vs. Gladstone Investment | STANLEY ELECTRIC vs. EMBARK EDUCATION LTD | STANLEY ELECTRIC vs. Japan Tobacco |
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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