Correlation Between Regis Healthcare and Advanced Braking
Can any of the company-specific risk be diversified away by investing in both Regis Healthcare and Advanced Braking 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 Regis Healthcare and Advanced Braking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regis Healthcare and Advanced Braking Technology, you can compare the effects of market volatilities on Regis Healthcare and Advanced Braking 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 Regis Healthcare with a short position of Advanced Braking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regis Healthcare and Advanced Braking.
Diversification Opportunities for Regis Healthcare and Advanced Braking
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Regis and Advanced is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Regis Healthcare and Advanced Braking Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Braking Tec and Regis Healthcare 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 Regis Healthcare are associated (or correlated) with Advanced Braking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Braking Tec has no effect on the direction of Regis Healthcare i.e., Regis Healthcare and Advanced Braking go up and down completely randomly.
Pair Corralation between Regis Healthcare and Advanced Braking
Assuming the 90 days trading horizon Regis Healthcare is expected to generate 0.74 times more return on investment than Advanced Braking. However, Regis Healthcare is 1.35 times less risky than Advanced Braking. It trades about 0.12 of its potential returns per unit of risk. Advanced Braking Technology is currently generating about 0.06 per unit of risk. If you would invest 187.00 in Regis Healthcare on August 29, 2024 and sell it today you would earn a total of 469.00 from holding Regis Healthcare or generate 250.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regis Healthcare vs. Advanced Braking Technology
Performance |
| Timeline |
| Regis Healthcare |
| Advanced Braking Tec |
Regis Healthcare and Advanced Braking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regis Healthcare and Advanced Braking
The main advantage of trading using opposite Regis Healthcare and Advanced Braking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regis Healthcare position performs unexpectedly, Advanced Braking 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 Advanced Braking will offset losses from the drop in Advanced Braking's long position.| Regis Healthcare vs. Westpac Banking | Regis Healthcare vs. Champion Iron | Regis Healthcare vs. Ridley | Regis Healthcare vs. Peel Mining |
| Advanced Braking vs. Summit Resources Limited | Advanced Braking vs. Champion Iron | Advanced Braking vs. Ridley | Advanced Braking vs. Peel Mining |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |