Correlation Between Group 6 and Regal Investment
Can any of the company-specific risk be diversified away by investing in both Group 6 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 Group 6 and Regal Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Group 6 Metals and Regal Investment, you can compare the effects of market volatilities on Group 6 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 Group 6 with a short position of Regal Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Group 6 and Regal Investment.
Diversification Opportunities for Group 6 and Regal Investment
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Group and Regal is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Group 6 Metals and Regal Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regal Investment and Group 6 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 Group 6 Metals 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 Group 6 i.e., Group 6 and Regal Investment go up and down completely randomly.
Pair Corralation between Group 6 and Regal Investment
If you would invest 352.00 in Regal Investment on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Regal Investment or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Group 6 Metals vs. Regal Investment
Performance |
| Timeline |
| Group 6 Metals |
| Regal Investment |
Group 6 and Regal Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Group 6 and Regal Investment
The main advantage of trading using opposite Group 6 and Regal Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Group 6 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.| Group 6 vs. Northern Star Resources | Group 6 vs. Evolution Mining | Group 6 vs. Bluescope Steel | Group 6 vs. Sandfire Resources NL |
| Regal Investment vs. Autosports Group | Regal Investment vs. Srj Technologies Group | Regal Investment vs. Neurotech International | Regal Investment vs. EROAD |
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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