Correlation Between BSP Financial and REGAL ASIAN
Can any of the company-specific risk be diversified away by investing in both BSP Financial 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 BSP Financial and REGAL ASIAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BSP Financial Group and REGAL ASIAN INVESTMENTS, you can compare the effects of market volatilities on BSP Financial 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 BSP Financial with a short position of REGAL ASIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of BSP Financial and REGAL ASIAN.
Diversification Opportunities for BSP Financial and REGAL ASIAN
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BSP and REGAL is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding BSP Financial Group 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 BSP Financial 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 BSP Financial Group 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 BSP Financial i.e., BSP Financial and REGAL ASIAN go up and down completely randomly.
Pair Corralation between BSP Financial and REGAL ASIAN
Assuming the 90 days trading horizon BSP Financial Group is expected to generate 1.36 times more return on investment than REGAL ASIAN. However, BSP Financial is 1.36 times more volatile than REGAL ASIAN INVESTMENTS. It trades about 0.06 of its potential returns per unit of risk. REGAL ASIAN INVESTMENTS is currently generating about 0.03 per unit of risk. If you would invest 397.00 in BSP Financial Group on August 29, 2024 and sell it today you would earn a total of 253.00 from holding BSP Financial Group or generate 63.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BSP Financial Group vs. REGAL ASIAN INVESTMENTS
Performance |
| Timeline |
| BSP Financial Group |
| REGAL ASIAN INVESTMENTS |
BSP Financial and REGAL ASIAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BSP Financial and REGAL ASIAN
The main advantage of trading using opposite BSP Financial and REGAL ASIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BSP Financial 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.| BSP Financial vs. Energy Resources | BSP Financial vs. 88 Energy | BSP Financial vs. Amani Gold | BSP Financial vs. A1 Investments Resources |
| REGAL ASIAN vs. ABACUS STORAGE KING | REGAL ASIAN vs. Odyssey Energy | REGAL ASIAN vs. Hotel Property Investments | REGAL ASIAN 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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