Correlation Between American International and Regis Common
Can any of the company-specific risk be diversified away by investing in both American International and Regis Common 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 American International and Regis Common into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American International Holdings and Regis Common, you can compare the effects of market volatilities on American International and Regis Common 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 American International with a short position of Regis Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of American International and Regis Common.
Diversification Opportunities for American International and Regis Common
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between American and Regis is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding American International Holding and Regis Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regis Common and American International 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 American International Holdings are associated (or correlated) with Regis Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regis Common has no effect on the direction of American International i.e., American International and Regis Common go up and down completely randomly.
Pair Corralation between American International and Regis Common
Given the investment horizon of 90 days American International Holdings is expected to generate 34.19 times more return on investment than Regis Common. However, American International is 34.19 times more volatile than Regis Common. It trades about 0.16 of its potential returns per unit of risk. Regis Common is currently generating about 0.02 per unit of risk. If you would invest 0.01 in American International Holdings on August 25, 2024 and sell it today you would earn a total of 0.00 from holding American International Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
American International Holding vs. Regis Common
Performance |
| Timeline |
| American International |
| Regis Common |
American International and Regis Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American International and Regis Common
The main advantage of trading using opposite American International and Regis Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American International position performs unexpectedly, Regis Common 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 Regis Common will offset losses from the drop in Regis Common's long position.| American International vs. Goodfood Market Corp | American International vs. GD Entertainment Technology | American International vs. Mister Car Wash | American International vs. Bright Horizons Family |
| Regis Common vs. Goodfood Market Corp | Regis Common vs. Frontdoor | Regis Common vs. XWELL Inc | Regis Common vs. Interactive Strength Common |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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