Correlation Between Regis Healthcare and GQG Partners
Can any of the company-specific risk be diversified away by investing in both Regis Healthcare and GQG Partners 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 GQG Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regis Healthcare and GQG Partners DRC, you can compare the effects of market volatilities on Regis Healthcare and GQG Partners 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 GQG Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regis Healthcare and GQG Partners.
Diversification Opportunities for Regis Healthcare and GQG Partners
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Regis and GQG is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Regis Healthcare and GQG Partners DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GQG Partners DRC 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 GQG Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GQG Partners DRC has no effect on the direction of Regis Healthcare i.e., Regis Healthcare and GQG Partners go up and down completely randomly.
Pair Corralation between Regis Healthcare and GQG Partners
Assuming the 90 days trading horizon Regis Healthcare is expected to generate 0.92 times more return on investment than GQG Partners. However, Regis Healthcare is 1.09 times less risky than GQG Partners. It trades about 0.13 of its potential returns per unit of risk. GQG Partners DRC is currently generating about 0.06 per unit of risk. If you would invest 186.00 in Regis Healthcare on August 25, 2024 and sell it today you would earn a total of 484.00 from holding Regis Healthcare or generate 260.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regis Healthcare vs. GQG Partners DRC
Performance |
| Timeline |
| Regis Healthcare |
| GQG Partners DRC |
Regis Healthcare and GQG Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regis Healthcare and GQG Partners
The main advantage of trading using opposite Regis Healthcare and GQG Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regis Healthcare position performs unexpectedly, GQG Partners 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 GQG Partners will offset losses from the drop in GQG Partners' long position.| Regis Healthcare vs. Inventis | Regis Healthcare vs. PM Capital Global | Regis Healthcare vs. Macquarie Group Ltd | Regis Healthcare vs. Wam Leaders |
| GQG Partners vs. Regis Healthcare | GQG Partners vs. Super Retail Group | GQG Partners vs. Capitol Health | GQG Partners vs. Retail Food Group |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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