Correlation Between ABACUS STORAGE and Regal Investment
Can any of the company-specific risk be diversified away by investing in both ABACUS STORAGE and Regal Investment 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 ABACUS STORAGE and Regal Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABACUS STORAGE KING and Regal Investment, you can compare the effects of market volatilities on ABACUS STORAGE and Regal Investment 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 ABACUS STORAGE with a short position of Regal Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABACUS STORAGE and Regal Investment.
Diversification Opportunities for ABACUS STORAGE and Regal Investment
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ABACUS and Regal is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding ABACUS STORAGE KING and Regal Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regal Investment and ABACUS STORAGE 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 ABACUS STORAGE KING are associated (or correlated) with Regal Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regal Investment has no effect on the direction of ABACUS STORAGE i.e., ABACUS STORAGE and Regal Investment go up and down completely randomly.
Pair Corralation between ABACUS STORAGE and Regal Investment
Assuming the 90 days trading horizon ABACUS STORAGE KING is expected to generate 39.03 times more return on investment than Regal Investment. However, ABACUS STORAGE is 39.03 times more volatile than Regal Investment. It trades about 0.05 of its potential returns per unit of risk. Regal Investment is currently generating about 0.05 per unit of risk. If you would invest 128.00 in ABACUS STORAGE KING on August 28, 2024 and sell it today you would lose (9.00) from holding ABACUS STORAGE KING or give up 7.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 67.87% |
| Values | Daily Returns |
ABACUS STORAGE KING vs. Regal Investment
Performance |
| Timeline |
| ABACUS STORAGE KING |
| Regal Investment |
ABACUS STORAGE and Regal Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABACUS STORAGE and Regal Investment
The main advantage of trading using opposite ABACUS STORAGE and Regal Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABACUS STORAGE position performs unexpectedly, Regal Investment 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 Investment will offset losses from the drop in Regal Investment's long position.| ABACUS STORAGE vs. Westpac Banking | ABACUS STORAGE vs. Odyssey Energy | ABACUS STORAGE vs. Insurance Australia Group | ABACUS STORAGE vs. Origin Energy |
| Regal Investment vs. ABACUS STORAGE KING | Regal Investment vs. Odyssey Energy | Regal Investment vs. Hotel Property Investments | Regal Investment vs. Origin Energy |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |