Correlation Between Midway and REGAL ASIAN
Can any of the company-specific risk be diversified away by investing in both Midway and REGAL ASIAN 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 Midway and REGAL ASIAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Midway and REGAL ASIAN INVESTMENTS, you can compare the effects of market volatilities on Midway and REGAL ASIAN 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 Midway with a short position of REGAL ASIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Midway and REGAL ASIAN.
Diversification Opportunities for Midway and REGAL ASIAN
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Midway and REGAL is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Midway and REGAL ASIAN INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REGAL ASIAN INVESTMENTS and Midway 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 Midway are associated (or correlated) with REGAL ASIAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REGAL ASIAN INVESTMENTS has no effect on the direction of Midway i.e., Midway and REGAL ASIAN go up and down completely randomly.
Pair Corralation between Midway and REGAL ASIAN
Assuming the 90 days trading horizon Midway is expected to generate 9.85 times more return on investment than REGAL ASIAN. However, Midway is 9.85 times more volatile than REGAL ASIAN INVESTMENTS. It trades about 0.21 of its potential returns per unit of risk. REGAL ASIAN INVESTMENTS is currently generating about -0.27 per unit of risk. If you would invest 79.00 in Midway on September 3, 2024 and sell it today you would earn a total of 46.00 from holding Midway or generate 58.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Midway vs. REGAL ASIAN INVESTMENTS
Performance |
| Timeline |
| Midway |
| REGAL ASIAN INVESTMENTS |
Midway and REGAL ASIAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Midway and REGAL ASIAN
The main advantage of trading using opposite Midway and REGAL ASIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Midway position performs unexpectedly, REGAL ASIAN 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 ASIAN will offset losses from the drop in REGAL ASIAN's long position.| Midway vs. Apiam Animal Health | Midway vs. Sonic Healthcare | Midway vs. Nine Entertainment Co | Midway vs. Kneomedia |
| REGAL ASIAN vs. Aristocrat Leisure | REGAL ASIAN vs. Hawsons Iron | REGAL ASIAN vs. Iron Road | REGAL ASIAN vs. Tombador Iron |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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