Correlation Between REGAL ASIAN and Dubber Corp
Can any of the company-specific risk be diversified away by investing in both REGAL ASIAN and Dubber Corp 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 Dubber Corp 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 Dubber Corp, you can compare the effects of market volatilities on REGAL ASIAN and Dubber Corp 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 Dubber Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL ASIAN and Dubber Corp.
Diversification Opportunities for REGAL ASIAN and Dubber Corp
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between REGAL and Dubber is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and Dubber Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dubber Corp 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 Dubber Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dubber Corp has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and Dubber Corp go up and down completely randomly.
Pair Corralation between REGAL ASIAN and Dubber Corp
Assuming the 90 days trading horizon REGAL ASIAN INVESTMENTS is expected to generate 0.17 times more return on investment than Dubber Corp. However, REGAL ASIAN INVESTMENTS is 5.72 times less risky than Dubber Corp. It trades about 0.03 of its potential returns per unit of risk. Dubber Corp is currently generating about -0.04 per unit of risk. If you would invest 184.00 in REGAL ASIAN INVESTMENTS on September 12, 2024 and sell it today you would earn a total of 23.00 from holding REGAL ASIAN INVESTMENTS or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
REGAL ASIAN INVESTMENTS vs. Dubber Corp
Performance |
| Timeline |
| REGAL ASIAN INVESTMENTS |
| Dubber Corp |
REGAL ASIAN and Dubber Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REGAL ASIAN and Dubber Corp
The main advantage of trading using opposite REGAL ASIAN and Dubber Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REGAL ASIAN position performs unexpectedly, Dubber Corp 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 Dubber Corp will offset losses from the drop in Dubber Corp's long position.| REGAL ASIAN vs. EVE Health Group | REGAL ASIAN vs. Apiam Animal Health | REGAL ASIAN vs. WiseTech Global Limited | REGAL ASIAN vs. Regis Healthcare |
| Dubber Corp vs. Clime Investment Management | Dubber Corp vs. Champion Iron | Dubber Corp vs. Computershare | Dubber Corp vs. Bailador Technology Invest |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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