Correlation Between Land Homes and Regis Healthcare
Can any of the company-specific risk be diversified away by investing in both Land Homes and Regis Healthcare 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 Land Homes and Regis Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Land Homes Group and Regis Healthcare, you can compare the effects of market volatilities on Land Homes and Regis Healthcare 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 Land Homes with a short position of Regis Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Land Homes and Regis Healthcare.
Diversification Opportunities for Land Homes and Regis Healthcare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Land and Regis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Land Homes Group and Regis Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regis Healthcare and Land Homes 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 Land Homes Group are associated (or correlated) with Regis Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regis Healthcare has no effect on the direction of Land Homes i.e., Land Homes and Regis Healthcare go up and down completely randomly.
Pair Corralation between Land Homes and Regis Healthcare
Assuming the 90 days trading horizon Land Homes Group is expected to under-perform the Regis Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Land Homes Group is 1.87 times less risky than Regis Healthcare. The stock trades about -0.09 of its potential returns per unit of risk. The Regis Healthcare is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 316.00 in Regis Healthcare on August 25, 2024 and sell it today you would earn a total of 354.00 from holding Regis Healthcare or generate 112.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Land Homes Group vs. Regis Healthcare
Performance |
| Timeline |
| Land Homes Group |
| Regis Healthcare |
Land Homes and Regis Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Land Homes and Regis Healthcare
The main advantage of trading using opposite Land Homes and Regis Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Land Homes position performs unexpectedly, Regis Healthcare 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 Regis Healthcare will offset losses from the drop in Regis Healthcare's long position.| Land Homes vs. Autosports Group | Land Homes vs. Credit Clear | Land Homes vs. Aristocrat Leisure | Land Homes vs. EP Financial Group |
| Regis Healthcare vs. Inventis | Regis Healthcare vs. PM Capital Global | Regis Healthcare vs. Macquarie Group Ltd | Regis Healthcare vs. Wam Leaders |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |