Correlation Between Regis Healthcare and Ras Technology
Can any of the company-specific risk be diversified away by investing in both Regis Healthcare and Ras Technology 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 Ras Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regis Healthcare and Ras Technology Holdings, you can compare the effects of market volatilities on Regis Healthcare and Ras Technology 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 Ras Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regis Healthcare and Ras Technology.
Diversification Opportunities for Regis Healthcare and Ras Technology
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Regis and Ras is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Regis Healthcare and Ras Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ras Technology Holdings 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 Ras Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ras Technology Holdings has no effect on the direction of Regis Healthcare i.e., Regis Healthcare and Ras Technology go up and down completely randomly.
Pair Corralation between Regis Healthcare and Ras Technology
Assuming the 90 days trading horizon Regis Healthcare is expected to generate 0.54 times more return on investment than Ras Technology. However, Regis Healthcare is 1.85 times less risky than Ras Technology. It trades about 0.02 of its potential returns per unit of risk. Ras Technology Holdings is currently generating about -0.3 per unit of risk. If you would invest 634.00 in Regis Healthcare on September 20, 2024 and sell it today you would earn a total of 2.00 from holding Regis Healthcare or generate 0.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regis Healthcare vs. Ras Technology Holdings
Performance |
| Timeline |
| Regis Healthcare |
| Ras Technology Holdings |
Regis Healthcare and Ras Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regis Healthcare and Ras Technology
The main advantage of trading using opposite Regis Healthcare and Ras Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regis Healthcare position performs unexpectedly, Ras Technology 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 Ras Technology will offset losses from the drop in Ras Technology's long position.| Regis Healthcare vs. EP Financial Group | Regis Healthcare vs. BKI Investment | Regis Healthcare vs. Pioneer Credit | Regis Healthcare vs. Magellan Financial Group |
| Ras Technology vs. National Storage REIT | Ras Technology vs. Mach7 Technologies | Ras Technology vs. Ainsworth Game Technology | Ras Technology vs. Step One Clothing |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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