Correlation Between Garda Diversified and Regal Funds
Can any of the company-specific risk be diversified away by investing in both Garda Diversified 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 Garda Diversified and Regal Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Garda Diversified Ppty and Regal Funds Management, you can compare the effects of market volatilities on Garda Diversified 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 Garda Diversified with a short position of Regal Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garda Diversified and Regal Funds.
Diversification Opportunities for Garda Diversified and Regal Funds
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Garda and Regal is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Garda Diversified Ppty 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 Garda Diversified 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 Garda Diversified Ppty 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 Garda Diversified i.e., Garda Diversified and Regal Funds go up and down completely randomly.
Pair Corralation between Garda Diversified and Regal Funds
Assuming the 90 days trading horizon Garda Diversified is expected to generate 11.06 times less return on investment than Regal Funds. But when comparing it to its historical volatility, Garda Diversified Ppty is 1.84 times less risky than Regal Funds. It trades about 0.02 of its potential returns per unit of risk. Regal Funds Management is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 255.00 in Regal Funds Management on August 27, 2024 and sell it today you would earn a total of 163.00 from holding Regal Funds Management or generate 63.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garda Diversified Ppty vs. Regal Funds Management
Performance |
| Timeline |
| Garda Diversified Ppty |
| Regal Funds Management |
Garda Diversified and Regal Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garda Diversified and Regal Funds
The main advantage of trading using opposite Garda Diversified and Regal Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garda Diversified 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.| Garda Diversified vs. Scentre Group | Garda Diversified vs. Vicinity Centres Re | Garda Diversified vs. Charter Hall Retail | Garda Diversified vs. Cromwell Property Group |
| Regal Funds vs. Kneomedia | Regal Funds vs. Patriot Battery Metals | Regal Funds vs. COAST ENTERTAINMENT HOLDINGS | Regal Funds vs. Leeuwin Metals |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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