Correlation Between Regis Healthcare and Inventis
Can any of the company-specific risk be diversified away by investing in both Regis Healthcare and Inventis 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 Inventis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regis Healthcare and Inventis, you can compare the effects of market volatilities on Regis Healthcare and Inventis 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 Inventis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regis Healthcare and Inventis.
Diversification Opportunities for Regis Healthcare and Inventis
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Regis and Inventis is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Regis Healthcare and Inventis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inventis 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 Inventis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inventis has no effect on the direction of Regis Healthcare i.e., Regis Healthcare and Inventis go up and down completely randomly.
Pair Corralation between Regis Healthcare and Inventis
Assuming the 90 days trading horizon Regis Healthcare is expected to generate 1.16 times more return on investment than Inventis. However, Regis Healthcare is 1.16 times more volatile than Inventis. It trades about 0.18 of its potential returns per unit of risk. Inventis is currently generating about -0.1 per unit of risk. If you would invest 279.00 in Regis Healthcare on August 29, 2024 and sell it today you would earn a total of 377.00 from holding Regis Healthcare or generate 135.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Regis Healthcare vs. Inventis
Performance |
| Timeline |
| Regis Healthcare |
| Inventis |
Regis Healthcare and Inventis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regis Healthcare and Inventis
The main advantage of trading using opposite Regis Healthcare and Inventis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regis Healthcare position performs unexpectedly, Inventis 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 Inventis will offset losses from the drop in Inventis' long position.| Regis Healthcare vs. Westpac Banking | Regis Healthcare vs. Champion Iron | Regis Healthcare vs. Ridley | Regis Healthcare vs. Peel Mining |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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