Correlation Between Charter Hall and Regis Healthcare
Can any of the company-specific risk be diversified away by investing in both Charter Hall and Regis Healthcare 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 Charter Hall and Regis Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Charter Hall Education and Regis Healthcare, you can compare the effects of market volatilities on Charter Hall and Regis Healthcare 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 Charter Hall with a short position of Regis Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Charter Hall and Regis Healthcare.
Diversification Opportunities for Charter Hall and Regis Healthcare
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Charter and Regis is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Charter Hall Education and Regis Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regis Healthcare and Charter Hall 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 Charter Hall Education are associated (or correlated) with Regis Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regis Healthcare has no effect on the direction of Charter Hall i.e., Charter Hall and Regis Healthcare go up and down completely randomly.
Pair Corralation between Charter Hall and Regis Healthcare
Assuming the 90 days trading horizon Charter Hall Education is expected to generate 0.46 times more return on investment than Regis Healthcare. However, Charter Hall Education is 2.15 times less risky than Regis Healthcare. It trades about 0.14 of its potential returns per unit of risk. Regis Healthcare is currently generating about 0.02 per unit of risk. If you would invest 262.00 in Charter Hall Education on August 31, 2024 and sell it today you would earn a total of 7.00 from holding Charter Hall Education or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Charter Hall Education vs. Regis Healthcare
Performance |
| Timeline |
| Charter Hall Education |
| Regis Healthcare |
Charter Hall and Regis Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Charter Hall and Regis Healthcare
The main advantage of trading using opposite Charter Hall and Regis Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Charter Hall position performs unexpectedly, Regis Healthcare 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 Healthcare will offset losses from the drop in Regis Healthcare's long position.| Charter Hall vs. Aurelia Metals | Charter Hall vs. Hutchison Telecommunications | Charter Hall vs. Sandon Capital Investments | Charter Hall vs. Truscott Mining Corp |
| Regis Healthcare vs. Pinnacle Investment Management | Regis Healthcare vs. Dicker Data | Regis Healthcare vs. ARN Media Limited | Regis Healthcare vs. Platinum Asset Management |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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