Correlation Between REGAL ASIAN and AMP
Can any of the company-specific risk be diversified away by investing in both REGAL ASIAN and AMP 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 ASIAN and AMP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REGAL ASIAN INVESTMENTS and AMP, you can compare the effects of market volatilities on REGAL ASIAN and AMP 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 ASIAN with a short position of AMP. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL ASIAN and AMP.
Diversification Opportunities for REGAL ASIAN and AMP
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between REGAL and AMP is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and AMP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMP and REGAL ASIAN 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 ASIAN INVESTMENTS are associated (or correlated) with AMP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMP has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and AMP go up and down completely randomly.
Pair Corralation between REGAL ASIAN and AMP
Assuming the 90 days trading horizon REGAL ASIAN INVESTMENTS is expected to under-perform the AMP. In addition to that, REGAL ASIAN is 1.0 times more volatile than AMP. It trades about -0.3 of its total potential returns per unit of risk. AMP is currently generating about 0.3 per unit of volatility. If you would invest 143.00 in AMP on September 1, 2024 and sell it today you would earn a total of 13.00 from holding AMP or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
REGAL ASIAN INVESTMENTS vs. AMP
Performance |
| Timeline |
| REGAL ASIAN INVESTMENTS |
| AMP |
REGAL ASIAN and AMP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REGAL ASIAN and AMP
The main advantage of trading using opposite REGAL ASIAN and AMP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REGAL ASIAN position performs unexpectedly, AMP 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 AMP will offset losses from the drop in AMP's long position.| REGAL ASIAN vs. ABACUS STORAGE KING | REGAL ASIAN vs. Midway | REGAL ASIAN vs. Aristocrat Leisure | REGAL ASIAN vs. Imricor Medical Systems |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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