Correlation Between Regal Investment and De Grey
Can any of the company-specific risk be diversified away by investing in both Regal Investment and De Grey 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 Regal Investment and De Grey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regal Investment and De Grey Mining, you can compare the effects of market volatilities on Regal Investment and De Grey 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 Regal Investment with a short position of De Grey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regal Investment and De Grey.
Diversification Opportunities for Regal Investment and De Grey
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Regal and DEG is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Regal Investment and De Grey Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on De Grey Mining and Regal Investment 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 Regal Investment are associated (or correlated) with De Grey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of De Grey Mining has no effect on the direction of Regal Investment i.e., Regal Investment and De Grey go up and down completely randomly.
Pair Corralation between Regal Investment and De Grey
Assuming the 90 days trading horizon Regal Investment is expected to under-perform the De Grey. But the stock apears to be less risky and, when comparing its historical volatility, Regal Investment is 6.58 times less risky than De Grey. The stock trades about -0.1 of its potential returns per unit of risk. The De Grey Mining is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 150.00 in De Grey Mining on October 25, 2024 and sell it today you would earn a total of 52.00 from holding De Grey Mining or generate 34.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regal Investment vs. De Grey Mining
Performance |
| Timeline |
| Regal Investment |
| De Grey Mining |
Regal Investment and De Grey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regal Investment and De Grey
The main advantage of trading using opposite Regal Investment and De Grey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regal Investment position performs unexpectedly, De Grey 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 De Grey will offset losses from the drop in De Grey's long position.| Regal Investment vs. Wt Financial Group | Regal Investment vs. Finexia Financial Group | Regal Investment vs. Falcon Metals | Regal Investment vs. Westpac Banking |
| De Grey vs. Phoslock Environmental Technologies | De Grey vs. 29Metals | De Grey vs. Stelar Metals | De Grey vs. Collins Foods |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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