Correlation Between Regis Healthcare and Energy Resources
Can any of the company-specific risk be diversified away by investing in both Regis Healthcare and Energy Resources 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 Energy Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regis Healthcare and Energy Resources, you can compare the effects of market volatilities on Regis Healthcare and Energy Resources 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 Energy Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regis Healthcare and Energy Resources.
Diversification Opportunities for Regis Healthcare and Energy Resources
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Regis and Energy is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Regis Healthcare and Energy Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Resources 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 Energy Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Resources has no effect on the direction of Regis Healthcare i.e., Regis Healthcare and Energy Resources go up and down completely randomly.
Pair Corralation between Regis Healthcare and Energy Resources
Assuming the 90 days trading horizon Regis Healthcare is expected to under-perform the Energy Resources. But the stock apears to be less risky and, when comparing its historical volatility, Regis Healthcare is 13.18 times less risky than Energy Resources. The stock trades about -0.05 of its potential returns per unit of risk. The Energy Resources is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 0.30 in Energy Resources on September 13, 2024 and sell it today you would lose (0.10) from holding Energy Resources or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regis Healthcare vs. Energy Resources
Performance |
| Timeline |
| Regis Healthcare |
| Energy Resources |
Regis Healthcare and Energy Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regis Healthcare and Energy Resources
The main advantage of trading using opposite Regis Healthcare and Energy Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regis Healthcare position performs unexpectedly, Energy Resources 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 Energy Resources will offset losses from the drop in Energy Resources' long position.| Regis Healthcare vs. Energy Resources | Regis Healthcare vs. 88 Energy | Regis Healthcare vs. Amani Gold | Regis Healthcare vs. A1 Investments Resources |
| Energy Resources vs. Perseus Mining | Energy Resources vs. K2 Asset Management | Energy Resources vs. Carlton Investments | Energy Resources vs. Pinnacle Investment Management |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |