Correlation Between Regis Healthcare and Insurance Australia
Can any of the company-specific risk be diversified away by investing in both Regis Healthcare and Insurance Australia 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 Insurance Australia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regis Healthcare and Insurance Australia Group, you can compare the effects of market volatilities on Regis Healthcare and Insurance Australia 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 Insurance Australia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regis Healthcare and Insurance Australia.
Diversification Opportunities for Regis Healthcare and Insurance Australia
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Regis and Insurance is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Regis Healthcare and Insurance Australia Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insurance Australia 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 Insurance Australia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insurance Australia has no effect on the direction of Regis Healthcare i.e., Regis Healthcare and Insurance Australia go up and down completely randomly.
Pair Corralation between Regis Healthcare and Insurance Australia
Assuming the 90 days trading horizon Regis Healthcare is expected to generate 13.1 times less return on investment than Insurance Australia. In addition to that, Regis Healthcare is 1.26 times more volatile than Insurance Australia Group. It trades about 0.02 of its total potential returns per unit of risk. Insurance Australia Group is currently generating about 0.4 per unit of volatility. If you would invest 748.00 in Insurance Australia Group on August 31, 2024 and sell it today you would earn a total of 99.00 from holding Insurance Australia Group or generate 13.24% 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. Insurance Australia Group
Performance |
| Timeline |
| Regis Healthcare |
| Insurance Australia |
Regis Healthcare and Insurance Australia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regis Healthcare and Insurance Australia
The main advantage of trading using opposite Regis Healthcare and Insurance Australia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regis Healthcare position performs unexpectedly, Insurance Australia 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 Insurance Australia will offset losses from the drop in Insurance Australia's long position.| Regis Healthcare vs. Pinnacle Investment Management | Regis Healthcare vs. Dicker Data | Regis Healthcare vs. ARN Media Limited | Regis Healthcare vs. Platinum Asset Management |
| Insurance Australia vs. Black Rock Mining | Insurance Australia vs. Healthco Healthcare and | Insurance Australia vs. Stelar Metals | Insurance Australia vs. Regis Healthcare |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |