Correlation Between REGAL ASIAN and Clime Investment
Can any of the company-specific risk be diversified away by investing in both REGAL ASIAN and Clime Investment 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 Clime Investment 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 Clime Investment Management, you can compare the effects of market volatilities on REGAL ASIAN and Clime Investment 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 Clime Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL ASIAN and Clime Investment.
Diversification Opportunities for REGAL ASIAN and Clime Investment
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between REGAL and Clime is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and Clime Investment Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clime Investment Man 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 Clime Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clime Investment Man has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and Clime Investment go up and down completely randomly.
Pair Corralation between REGAL ASIAN and Clime Investment
Assuming the 90 days trading horizon REGAL ASIAN INVESTMENTS is expected to generate 0.51 times more return on investment than Clime Investment. However, REGAL ASIAN INVESTMENTS is 1.97 times less risky than Clime Investment. It trades about 0.07 of its potential returns per unit of risk. Clime Investment Management is currently generating about 0.02 per unit of risk. If you would invest 178.00 in REGAL ASIAN INVESTMENTS on August 25, 2024 and sell it today you would earn a total of 40.00 from holding REGAL ASIAN INVESTMENTS or generate 22.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
REGAL ASIAN INVESTMENTS vs. Clime Investment Management
Performance |
| Timeline |
| REGAL ASIAN INVESTMENTS |
| Clime Investment Man |
REGAL ASIAN and Clime Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REGAL ASIAN and Clime Investment
The main advantage of trading using opposite REGAL ASIAN and Clime Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REGAL ASIAN position performs unexpectedly, Clime Investment 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 Clime Investment will offset losses from the drop in Clime Investment's long position.| REGAL ASIAN vs. Queste Communications | REGAL ASIAN vs. Flagship Investments | REGAL ASIAN vs. Embark Education Group | REGAL ASIAN vs. Talisman Mining |
| Clime Investment vs. Kingsrose Mining | Clime Investment vs. Andean Silver Limited | Clime Investment vs. Capitol Health | Clime Investment vs. Eagle Mountain Mining |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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