Correlation Between PM Capital and Regis Healthcare
Can any of the company-specific risk be diversified away by investing in both PM Capital and Regis Healthcare 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 PM Capital and Regis Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PM Capital Global and Regis Healthcare, you can compare the effects of market volatilities on PM Capital and Regis Healthcare 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 PM Capital with a short position of Regis Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of PM Capital and Regis Healthcare.
Diversification Opportunities for PM Capital and Regis Healthcare
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PGF and Regis is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding PM Capital Global and Regis Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regis Healthcare and PM Capital 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 PM Capital Global are associated (or correlated) with Regis Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regis Healthcare has no effect on the direction of PM Capital i.e., PM Capital and Regis Healthcare go up and down completely randomly.
Pair Corralation between PM Capital and Regis Healthcare
Assuming the 90 days trading horizon PM Capital is expected to generate 1.35 times less return on investment than Regis Healthcare. But when comparing it to its historical volatility, PM Capital Global is 1.68 times less risky than Regis Healthcare. It trades about 0.19 of its potential returns per unit of risk. Regis Healthcare is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 621.00 in Regis Healthcare on November 10, 2024 and sell it today you would earn a total of 36.00 from holding Regis Healthcare or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PM Capital Global vs. Regis Healthcare
Performance |
| Timeline |
| PM Capital Global |
| Regis Healthcare |
PM Capital and Regis Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PM Capital and Regis Healthcare
The main advantage of trading using opposite PM Capital and Regis Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PM Capital position performs unexpectedly, Regis Healthcare 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 Regis Healthcare will offset losses from the drop in Regis Healthcare's long position.| PM Capital vs. Legacy Iron Ore | PM Capital vs. The Environmental Group | PM Capital vs. Centuria Industrial Reit | PM Capital vs. Black Rock Mining |
| Regis Healthcare vs. Macquarie Technology Group | Regis Healthcare vs. Southern Hemisphere Mining | Regis Healthcare vs. Complii FinTech Solutions | Regis Healthcare vs. Readytech Holdings |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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