Correlation Between T Rex and Regents Park
Can any of the company-specific risk be diversified away by investing in both T Rex and Regents Park 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 T Rex and Regents Park into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Rex 2X Long and Regents Park Funds, you can compare the effects of market volatilities on T Rex and Regents Park 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 T Rex with a short position of Regents Park. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Rex and Regents Park.
Diversification Opportunities for T Rex and Regents Park
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NVDX and Regents is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding T Rex 2X Long and Regents Park Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regents Park Funds and T Rex 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 T Rex 2X Long are associated (or correlated) with Regents Park. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regents Park Funds has no effect on the direction of T Rex i.e., T Rex and Regents Park go up and down completely randomly.
Pair Corralation between T Rex and Regents Park
Given the investment horizon of 90 days T Rex 2X Long is expected to generate 7.51 times more return on investment than Regents Park. However, T Rex is 7.51 times more volatile than Regents Park Funds. It trades about 0.14 of its potential returns per unit of risk. Regents Park Funds is currently generating about 0.02 per unit of risk. If you would invest 249.00 in T Rex 2X Long on September 1, 2024 and sell it today you would earn a total of 1,493 from holding T Rex 2X Long or generate 599.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 40.21% |
| Values | Daily Returns |
T Rex 2X Long vs. Regents Park Funds
Performance |
| Timeline |
| T Rex 2X |
| Regents Park Funds |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
T Rex and Regents Park Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T Rex and Regents Park
The main advantage of trading using opposite T Rex and Regents Park positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Rex position performs unexpectedly, Regents Park 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 Regents Park will offset losses from the drop in Regents Park's long position.| T Rex vs. Tidal Trust II | T Rex vs. Tidal Trust II | T Rex vs. Direxion Daily META | T Rex vs. Direxion Daily META |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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