Correlation Between Kip McGrath and Regal Investment
Can any of the company-specific risk be diversified away by investing in both Kip McGrath 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 Kip McGrath and Regal Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kip McGrath Education and Regal Investment, you can compare the effects of market volatilities on Kip McGrath 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 Kip McGrath with a short position of Regal Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kip McGrath and Regal Investment.
Diversification Opportunities for Kip McGrath and Regal Investment
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kip and Regal is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Kip McGrath Education and Regal Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regal Investment and Kip McGrath 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 Kip McGrath Education 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 Kip McGrath i.e., Kip McGrath and Regal Investment go up and down completely randomly.
Pair Corralation between Kip McGrath and Regal Investment
Assuming the 90 days trading horizon Kip McGrath Education is expected to under-perform the Regal Investment. In addition to that, Kip McGrath is 2.63 times more volatile than Regal Investment. It trades about -0.01 of its total potential returns per unit of risk. Regal Investment is currently generating about 0.05 per unit of volatility. If you would invest 267.00 in Regal Investment on August 28, 2024 and sell it today you would earn a total of 82.00 from holding Regal Investment or generate 30.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kip McGrath Education vs. Regal Investment
Performance |
| Timeline |
| Kip McGrath Education |
| Regal Investment |
Kip McGrath and Regal Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kip McGrath and Regal Investment
The main advantage of trading using opposite Kip McGrath and Regal Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kip McGrath 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.| Kip McGrath vs. Actinogen Medical | Kip McGrath vs. Hutchison Telecommunications | Kip McGrath vs. Hotel Property Investments | Kip McGrath vs. G8 Education |
| Regal Investment vs. ABACUS STORAGE KING | Regal Investment vs. Odyssey Energy | Regal Investment vs. Hotel Property Investments | Regal Investment vs. Origin Energy |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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