Correlation Between Mantle Minerals and Regal Funds
Can any of the company-specific risk be diversified away by investing in both Mantle Minerals 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 Mantle Minerals and Regal Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mantle Minerals Limited and Regal Funds Management, you can compare the effects of market volatilities on Mantle Minerals 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 Mantle Minerals with a short position of Regal Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mantle Minerals and Regal Funds.
Diversification Opportunities for Mantle Minerals and Regal Funds
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mantle and Regal is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Mantle Minerals Limited 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 Mantle Minerals 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 Mantle Minerals Limited 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 Mantle Minerals i.e., Mantle Minerals and Regal Funds go up and down completely randomly.
Pair Corralation between Mantle Minerals and Regal Funds
Assuming the 90 days trading horizon Mantle Minerals Limited is not expected to generate positive returns. Moreover, Mantle Minerals is 13.28 times more volatile than Regal Funds Management. It trades away all of its potential returns to assume current level of volatility. Regal Funds Management is currently generating about 0.24 per unit of risk. If you would invest 356.00 in Regal Funds Management on September 4, 2024 and sell it today you would earn a total of 37.00 from holding Regal Funds Management or generate 10.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mantle Minerals Limited vs. Regal Funds Management
Performance |
| Timeline |
| Mantle Minerals |
| Regal Funds Management |
Mantle Minerals and Regal Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mantle Minerals and Regal Funds
The main advantage of trading using opposite Mantle Minerals and Regal Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mantle Minerals 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.| Mantle Minerals vs. Accent Resources NL | Mantle Minerals vs. Hutchison Telecommunications | Mantle Minerals vs. Energy Resources | Mantle Minerals vs. GO2 People |
| Regal Funds vs. Westpac Banking | Regal Funds vs. Ecofibre | Regal Funds vs. Adriatic Metals Plc | Regal Funds vs. Australian Dairy Farms |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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