Correlation Between Regis Healthcare and Superior Resources
Can any of the company-specific risk be diversified away by investing in both Regis Healthcare and Superior 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 Superior 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 Superior Resources, you can compare the effects of market volatilities on Regis Healthcare and Superior 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 Superior Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regis Healthcare and Superior Resources.
Diversification Opportunities for Regis Healthcare and Superior Resources
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Regis and Superior is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Regis Healthcare and Superior Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior 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 Superior Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Resources has no effect on the direction of Regis Healthcare i.e., Regis Healthcare and Superior Resources go up and down completely randomly.
Pair Corralation between Regis Healthcare and Superior Resources
Assuming the 90 days trading horizon Regis Healthcare is expected to generate 0.25 times more return on investment than Superior Resources. However, Regis Healthcare is 3.99 times less risky than Superior Resources. It trades about 0.07 of its potential returns per unit of risk. Superior Resources is currently generating about -0.01 per unit of risk. If you would invest 649.00 in Regis Healthcare on September 5, 2024 and sell it today you would earn a total of 32.00 from holding Regis Healthcare or generate 4.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regis Healthcare vs. Superior Resources
Performance |
| Timeline |
| Regis Healthcare |
| Superior Resources |
Regis Healthcare and Superior Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regis Healthcare and Superior Resources
The main advantage of trading using opposite Regis Healthcare and Superior Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regis Healthcare position performs unexpectedly, Superior 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 Superior Resources will offset losses from the drop in Superior Resources' long position.| Regis Healthcare vs. Macquarie Group | Regis Healthcare vs. Macquarie Group Ltd | Regis Healthcare vs. Commonwealth Bank | Regis Healthcare vs. Rio Tinto |
| Superior Resources vs. Regis Healthcare | Superior Resources vs. Ainsworth Game Technology | Superior Resources vs. Singular Health Group | Superior Resources vs. Oceania 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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