Correlation Between British Amer and Regal Funds
Can any of the company-specific risk be diversified away by investing in both British Amer 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 British Amer and Regal Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bailador Technology Invest and Regal Funds Management, you can compare the effects of market volatilities on British Amer 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 British Amer with a short position of Regal Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of British Amer and Regal Funds.
Diversification Opportunities for British Amer and Regal Funds
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between British and Regal is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Bailador Technology Invest 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 British Amer 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 Bailador Technology Invest 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 British Amer i.e., British Amer and Regal Funds go up and down completely randomly.
Pair Corralation between British Amer and Regal Funds
Assuming the 90 days trading horizon Bailador Technology Invest is expected to under-perform the Regal Funds. But the stock apears to be less risky and, when comparing its historical volatility, Bailador Technology Invest is 2.22 times less risky than Regal Funds. The stock trades about -0.04 of its potential returns per unit of risk. The Regal Funds Management is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 356.00 in Regal Funds Management on September 3, 2024 and sell it today you would earn a total of 47.00 from holding Regal Funds Management or generate 13.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bailador Technology Invest vs. Regal Funds Management
Performance |
| Timeline |
| Bailador Technology |
| Regal Funds Management |
British Amer and Regal Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with British Amer and Regal Funds
The main advantage of trading using opposite British Amer and Regal Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if British Amer 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.| British Amer vs. Audio Pixels Holdings | British Amer vs. Iodm | British Amer vs. Nsx | British Amer vs. TTG Fintech |
| Regal Funds vs. Audio Pixels Holdings | Regal Funds vs. Iodm | Regal Funds vs. Nsx | Regal Funds vs. TTG Fintech |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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