Correlation Between KOOL2PLAY and REGAL ASIAN
Can any of the company-specific risk be diversified away by investing in both KOOL2PLAY and REGAL ASIAN 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 KOOL2PLAY and REGAL ASIAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KOOL2PLAY SA ZY and REGAL ASIAN INVESTMENTS, you can compare the effects of market volatilities on KOOL2PLAY and REGAL ASIAN 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 KOOL2PLAY with a short position of REGAL ASIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of KOOL2PLAY and REGAL ASIAN.
Diversification Opportunities for KOOL2PLAY and REGAL ASIAN
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KOOL2PLAY and REGAL is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding KOOL2PLAY SA ZY and REGAL ASIAN INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REGAL ASIAN INVESTMENTS and KOOL2PLAY 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 KOOL2PLAY SA ZY are associated (or correlated) with REGAL ASIAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REGAL ASIAN INVESTMENTS has no effect on the direction of KOOL2PLAY i.e., KOOL2PLAY and REGAL ASIAN go up and down completely randomly.
Pair Corralation between KOOL2PLAY and REGAL ASIAN
Assuming the 90 days horizon KOOL2PLAY SA ZY is expected to under-perform the REGAL ASIAN. In addition to that, KOOL2PLAY is 3.05 times more volatile than REGAL ASIAN INVESTMENTS. It trades about -0.11 of its total potential returns per unit of risk. REGAL ASIAN INVESTMENTS is currently generating about -0.08 per unit of volatility. If you would invest 133.00 in REGAL ASIAN INVESTMENTS on September 5, 2024 and sell it today you would lose (8.00) from holding REGAL ASIAN INVESTMENTS or give up 6.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KOOL2PLAY SA ZY vs. REGAL ASIAN INVESTMENTS
Performance |
| Timeline |
| KOOL2PLAY SA ZY |
| REGAL ASIAN INVESTMENTS |
KOOL2PLAY and REGAL ASIAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KOOL2PLAY and REGAL ASIAN
The main advantage of trading using opposite KOOL2PLAY and REGAL ASIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KOOL2PLAY position performs unexpectedly, REGAL ASIAN 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 REGAL ASIAN will offset losses from the drop in REGAL ASIAN's long position.| KOOL2PLAY vs. Nintendo Co | KOOL2PLAY vs. Sea Limited | KOOL2PLAY vs. Take Two Interactive Software | KOOL2PLAY vs. Bilibili |
| REGAL ASIAN vs. KOOL2PLAY SA ZY | REGAL ASIAN vs. PLAY2CHILL SA ZY | REGAL ASIAN vs. PLAYSTUDIOS A DL 0001 | REGAL ASIAN vs. CarsalesCom |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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