Correlation Between Regis Healthcare and Bell Financial
Can any of the company-specific risk be diversified away by investing in both Regis Healthcare and Bell Financial 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 Bell Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regis Healthcare and Bell Financial Group, you can compare the effects of market volatilities on Regis Healthcare and Bell Financial 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 Bell Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regis Healthcare and Bell Financial.
Diversification Opportunities for Regis Healthcare and Bell Financial
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Regis and Bell is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Regis Healthcare and Bell Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bell Financial Group 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 Bell Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bell Financial Group has no effect on the direction of Regis Healthcare i.e., Regis Healthcare and Bell Financial go up and down completely randomly.
Pair Corralation between Regis Healthcare and Bell Financial
Assuming the 90 days trading horizon Regis Healthcare is expected to under-perform the Bell Financial. In addition to that, Regis Healthcare is 1.06 times more volatile than Bell Financial Group. It trades about -0.01 of its total potential returns per unit of risk. Bell Financial Group is currently generating about 0.09 per unit of volatility. If you would invest 126.00 in Bell Financial Group on September 12, 2024 and sell it today you would earn a total of 5.00 from holding Bell Financial Group or generate 3.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Regis Healthcare vs. Bell Financial Group
Performance |
| Timeline |
| Regis Healthcare |
| Bell Financial Group |
Regis Healthcare and Bell Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regis Healthcare and Bell Financial
The main advantage of trading using opposite Regis Healthcare and Bell Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regis Healthcare position performs unexpectedly, Bell Financial 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 Bell Financial will offset losses from the drop in Bell Financial's long position.| Regis Healthcare vs. Retail Food Group | Regis Healthcare vs. Stelar Metals | Regis Healthcare vs. Computershare | Regis Healthcare vs. Duxton Broadacre Farms |
| Bell Financial vs. Aneka Tambang Tbk | Bell Financial vs. Commonwealth Bank | Bell Financial vs. BHP Group Limited | Bell Financial vs. Rio Tinto |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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