Correlation Between Amani Gold and Regal Funds
Can any of the company-specific risk be diversified away by investing in both Amani Gold and Regal Funds 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 Amani Gold and Regal Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amani Gold and Regal Funds Management, you can compare the effects of market volatilities on Amani Gold and Regal Funds 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 Amani Gold with a short position of Regal Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amani Gold and Regal Funds.
Diversification Opportunities for Amani Gold and Regal Funds
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amani and Regal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amani Gold and Regal Funds Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regal Funds Management and Amani Gold 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 Amani Gold are associated (or correlated) with Regal Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regal Funds Management has no effect on the direction of Amani Gold i.e., Amani Gold and Regal Funds go up and down completely randomly.
Pair Corralation between Amani Gold and Regal Funds
If you would invest 312.00 in Regal Funds Management on August 31, 2024 and sell it today you would earn a total of 91.00 from holding Regal Funds Management or generate 29.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
Amani Gold vs. Regal Funds Management
Performance |
| Timeline |
| Amani Gold |
| Regal Funds Management |
Amani Gold and Regal Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amani Gold and Regal Funds
The main advantage of trading using opposite Amani Gold and Regal Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amani Gold position performs unexpectedly, Regal Funds 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 Funds will offset losses from the drop in Regal Funds' long position.| Amani Gold vs. Computershare | Amani Gold vs. Truscott Mining Corp | Amani Gold vs. Queste Communications | Amani Gold vs. Credit Clear |
| Regal Funds vs. Energy Resources | Regal Funds vs. 88 Energy | Regal Funds vs. Amani Gold | Regal Funds vs. A1 Investments Resources |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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