Correlation Between Regis Healthcare and Atomos
Can any of the company-specific risk be diversified away by investing in both Regis Healthcare and Atomos 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 Atomos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regis Healthcare and Atomos, you can compare the effects of market volatilities on Regis Healthcare and Atomos 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 Atomos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regis Healthcare and Atomos.
Diversification Opportunities for Regis Healthcare and Atomos
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Regis and Atomos is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Regis Healthcare and Atomos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atomos 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 Atomos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atomos has no effect on the direction of Regis Healthcare i.e., Regis Healthcare and Atomos go up and down completely randomly.
Pair Corralation between Regis Healthcare and Atomos
Assuming the 90 days trading horizon Regis Healthcare is expected to generate 0.3 times more return on investment than Atomos. However, Regis Healthcare is 3.35 times less risky than Atomos. It trades about 0.15 of its potential returns per unit of risk. Atomos is currently generating about -0.06 per unit of risk. If you would invest 312.00 in Regis Healthcare on September 14, 2024 and sell it today you would earn a total of 336.00 from holding Regis Healthcare or generate 107.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regis Healthcare vs. Atomos
Performance |
| Timeline |
| Regis Healthcare |
| Atomos |
Regis Healthcare and Atomos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regis Healthcare and Atomos
The main advantage of trading using opposite Regis Healthcare and Atomos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regis Healthcare position performs unexpectedly, Atomos 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 Atomos will offset losses from the drop in Atomos' long position.| Regis Healthcare vs. Energy Resources | Regis Healthcare vs. 88 Energy | Regis Healthcare vs. Amani Gold | Regis Healthcare vs. A1 Investments Resources |
| Atomos vs. Regis Healthcare | Atomos vs. Pinnacle Investment Management | Atomos vs. Ramsay Health Care | Atomos vs. Regal Investment |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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