Correlation Between REGAL ASIAN and Bell Financial
Can any of the company-specific risk be diversified away by investing in both REGAL ASIAN and Bell Financial 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 Bell Financial 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 Bell Financial Group, you can compare the effects of market volatilities on REGAL ASIAN and Bell Financial 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 Bell Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL ASIAN and Bell Financial.
Diversification Opportunities for REGAL ASIAN and Bell Financial
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between REGAL and Bell is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and Bell Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bell Financial Group 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 Bell Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bell Financial Group has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and Bell Financial go up and down completely randomly.
Pair Corralation between REGAL ASIAN and Bell Financial
Assuming the 90 days trading horizon REGAL ASIAN INVESTMENTS is expected to under-perform the Bell Financial. But the stock apears to be less risky and, when comparing its historical volatility, REGAL ASIAN INVESTMENTS is 1.49 times less risky than Bell Financial. The stock trades about -0.29 of its potential returns per unit of risk. The Bell Financial Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 130.00 in Bell Financial Group on September 14, 2024 and sell it today you would earn a total of 4.00 from holding Bell Financial Group or generate 3.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
REGAL ASIAN INVESTMENTS vs. Bell Financial Group
Performance |
| Timeline |
| REGAL ASIAN INVESTMENTS |
| Bell Financial Group |
REGAL ASIAN and Bell Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REGAL ASIAN and Bell Financial
The main advantage of trading using opposite REGAL ASIAN and Bell Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REGAL ASIAN position performs unexpectedly, Bell Financial 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 Bell Financial will offset losses from the drop in Bell Financial's long position.| REGAL ASIAN vs. Westpac Banking | REGAL ASIAN vs. ABACUS STORAGE KING | REGAL ASIAN vs. Odyssey Energy | REGAL ASIAN vs. Sims |
| Bell Financial vs. REGAL ASIAN INVESTMENTS | Bell Financial vs. Auctus Alternative Investments | Bell Financial vs. Super Retail Group | Bell Financial vs. Charter Hall Education |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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