Correlation Between Regal Investment and PM Capital
Can any of the company-specific risk be diversified away by investing in both Regal Investment and PM Capital 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 PM Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regal Investment and PM Capital Global, you can compare the effects of market volatilities on Regal Investment and PM Capital 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 PM Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regal Investment and PM Capital.
Diversification Opportunities for Regal Investment and PM Capital
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Regal and PGF is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Regal Investment and PM Capital Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PM Capital Global 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 PM Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PM Capital Global has no effect on the direction of Regal Investment i.e., Regal Investment and PM Capital go up and down completely randomly.
Pair Corralation between Regal Investment and PM Capital
Assuming the 90 days trading horizon Regal Investment is expected to generate 1.47 times less return on investment than PM Capital. In addition to that, Regal Investment is 1.01 times more volatile than PM Capital Global. It trades about 0.04 of its total potential returns per unit of risk. PM Capital Global is currently generating about 0.07 per unit of volatility. If you would invest 153.00 in PM Capital Global on September 5, 2024 and sell it today you would earn a total of 77.00 from holding PM Capital Global or generate 50.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Regal Investment vs. PM Capital Global
Performance |
| Timeline |
| Regal Investment |
| PM Capital Global |
Regal Investment and PM Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regal Investment and PM Capital
The main advantage of trading using opposite Regal Investment and PM Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regal Investment position performs unexpectedly, PM Capital 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 PM Capital will offset losses from the drop in PM Capital's long position.| Regal Investment vs. ABACUS STORAGE KING | Regal Investment vs. Odyssey Energy | Regal Investment vs. JB Hi Fi | Regal Investment vs. Sims |
| PM Capital vs. AiMedia Technologies | PM Capital vs. Pinnacle Investment Management | PM Capital vs. Auctus Alternative Investments | PM Capital vs. Regal Investment |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |