Correlation Between Inventis and Regal Funds
Can any of the company-specific risk be diversified away by investing in both Inventis 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 Inventis and Regal Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inventis and Regal Funds Management, you can compare the effects of market volatilities on Inventis 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 Inventis with a short position of Regal Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inventis and Regal Funds.
Diversification Opportunities for Inventis and Regal Funds
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Inventis and Regal is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Inventis 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 Inventis 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 Inventis 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 Inventis i.e., Inventis and Regal Funds go up and down completely randomly.
Pair Corralation between Inventis and Regal Funds
Assuming the 90 days trading horizon Inventis is expected to under-perform the Regal Funds. But the stock apears to be less risky and, when comparing its historical volatility, Inventis is 1.21 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 0.07 of returns per unit of risk over similar time horizon. If you would invest 254.00 in Regal Funds Management on August 28, 2024 and sell it today you would earn a total of 154.00 from holding Regal Funds Management or generate 60.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Inventis vs. Regal Funds Management
Performance |
| Timeline |
| Inventis |
| Regal Funds Management |
Inventis and Regal Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inventis and Regal Funds
The main advantage of trading using opposite Inventis and Regal Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inventis 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.| Inventis vs. Infomedia | Inventis vs. Advanced Braking Technology | Inventis vs. Kneomedia | Inventis vs. Legacy Iron Ore |
| Regal Funds vs. National Australia Bank | Regal Funds vs. National Australia Bank | Regal Funds vs. Westpac Banking | Regal Funds vs. National Australia Bank |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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