Correlation Between Nine Entertainment and Regal Investment
Can any of the company-specific risk be diversified away by investing in both Nine Entertainment 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 Nine Entertainment and Regal Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nine Entertainment Co and Regal Investment, you can compare the effects of market volatilities on Nine Entertainment 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 Nine Entertainment with a short position of Regal Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nine Entertainment and Regal Investment.
Diversification Opportunities for Nine Entertainment and Regal Investment
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nine and Regal is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Nine Entertainment Co and Regal Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regal Investment and Nine Entertainment 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 Nine Entertainment Co 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 Nine Entertainment i.e., Nine Entertainment and Regal Investment go up and down completely randomly.
Pair Corralation between Nine Entertainment and Regal Investment
Assuming the 90 days trading horizon Nine Entertainment Co is expected to generate 2.77 times more return on investment than Regal Investment. However, Nine Entertainment is 2.77 times more volatile than Regal Investment. It trades about 0.24 of its potential returns per unit of risk. Regal Investment is currently generating about 0.05 per unit of risk. If you would invest 125.00 in Nine Entertainment Co on October 25, 2024 and sell it today you would earn a total of 10.00 from holding Nine Entertainment Co or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nine Entertainment Co vs. Regal Investment
Performance |
| Timeline |
| Nine Entertainment |
| Regal Investment |
Nine Entertainment and Regal Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nine Entertainment and Regal Investment
The main advantage of trading using opposite Nine Entertainment and Regal Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nine Entertainment 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.| Nine Entertainment vs. Sky Metals | Nine Entertainment vs. Aurelia Metals | Nine Entertainment vs. K2 Asset Management | Nine Entertainment vs. BKI Investment |
| Regal Investment vs. Wt Financial Group | Regal Investment vs. Finexia Financial Group | Regal Investment vs. Falcon Metals | Regal Investment vs. Westpac Banking |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |