Correlation Between Origin Energy and Regal Investment
Can any of the company-specific risk be diversified away by investing in both Origin Energy 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 Origin Energy and Regal Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Energy and Regal Investment, you can compare the effects of market volatilities on Origin Energy 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 Origin Energy with a short position of Regal Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Energy and Regal Investment.
Diversification Opportunities for Origin Energy and Regal Investment
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Origin and Regal is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Origin Energy and Regal Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regal Investment and Origin Energy 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 Origin Energy 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 Origin Energy i.e., Origin Energy and Regal Investment go up and down completely randomly.
Pair Corralation between Origin Energy and Regal Investment
Assuming the 90 days trading horizon Origin Energy is expected to generate 0.99 times more return on investment than Regal Investment. However, Origin Energy is 1.01 times less risky than Regal Investment. It trades about 0.07 of its potential returns per unit of risk. Regal Investment is currently generating about 0.05 per unit of risk. If you would invest 708.00 in Origin Energy on August 27, 2024 and sell it today you would earn a total of 392.00 from holding Origin Energy or generate 55.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Energy vs. Regal Investment
Performance |
| Timeline |
| Origin Energy |
| Regal Investment |
Origin Energy and Regal Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Energy and Regal Investment
The main advantage of trading using opposite Origin Energy and Regal Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Energy 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.| Origin Energy vs. AiMedia Technologies | Origin Energy vs. Austco Healthcare | Origin Energy vs. Nine Entertainment Co | Origin Energy vs. Queste Communications |
| Regal Investment vs. ABACUS STORAGE KING | Regal Investment vs. Odyssey Energy | Regal Investment vs. Hotel Property Investments | Regal Investment vs. Origin Energy |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |