Correlation Between Hudson Investment and Regal Funds
Can any of the company-specific risk be diversified away by investing in both Hudson Investment 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 Hudson Investment and Regal Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hudson Investment Group and Regal Funds Management, you can compare the effects of market volatilities on Hudson Investment 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 Hudson Investment with a short position of Regal Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hudson Investment and Regal Funds.
Diversification Opportunities for Hudson Investment and Regal Funds
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hudson and Regal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hudson Investment Group 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 Hudson Investment 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 Hudson Investment Group 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 Hudson Investment i.e., Hudson Investment and Regal Funds go up and down completely randomly.
Pair Corralation between Hudson Investment and Regal Funds
Assuming the 90 days trading horizon Hudson Investment is expected to generate 2.75 times less return on investment than Regal Funds. But when comparing it to its historical volatility, Hudson Investment Group is 1.66 times less risky than Regal Funds. It trades about 0.07 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 | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hudson Investment Group vs. Regal Funds Management
Performance |
| Timeline |
| Hudson Investment |
| Regal Funds Management |
Hudson Investment and Regal Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hudson Investment and Regal Funds
The main advantage of trading using opposite Hudson Investment and Regal Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hudson Investment 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.| Hudson Investment vs. Alto Metals | Hudson Investment vs. Charter Hall Retail | Hudson Investment vs. GreenX Metals | Hudson Investment vs. Leeuwin Metals |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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