Correlation Between REGAL ASIAN and Hub24
Can any of the company-specific risk be diversified away by investing in both REGAL ASIAN and Hub24 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 Hub24 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 Hub24, you can compare the effects of market volatilities on REGAL ASIAN and Hub24 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 Hub24. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL ASIAN and Hub24.
Diversification Opportunities for REGAL ASIAN and Hub24
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between REGAL and Hub24 is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and Hub24 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hub24 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 Hub24. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hub24 has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and Hub24 go up and down completely randomly.
Pair Corralation between REGAL ASIAN and Hub24
Assuming the 90 days trading horizon REGAL ASIAN is expected to generate 24.63 times less return on investment than Hub24. In addition to that, REGAL ASIAN is 1.03 times more volatile than Hub24. It trades about 0.01 of its total potential returns per unit of risk. Hub24 is currently generating about 0.31 per unit of volatility. If you would invest 4,349 in Hub24 on September 1, 2024 and sell it today you would earn a total of 3,188 from holding Hub24 or generate 73.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.23% |
| Values | Daily Returns |
REGAL ASIAN INVESTMENTS vs. Hub24
Performance |
| Timeline |
| REGAL ASIAN INVESTMENTS |
| Hub24 |
REGAL ASIAN and Hub24 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REGAL ASIAN and Hub24
The main advantage of trading using opposite REGAL ASIAN and Hub24 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REGAL ASIAN position performs unexpectedly, Hub24 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 Hub24 will offset losses from the drop in Hub24's long position.| REGAL ASIAN vs. ABACUS STORAGE KING | REGAL ASIAN vs. Midway | REGAL ASIAN vs. Aristocrat Leisure | REGAL ASIAN vs. Imricor Medical Systems |
| Hub24 vs. Pinnacle Investment Management | Hub24 vs. Alternative Investment Trust | Hub24 vs. REGAL ASIAN INVESTMENTS | Hub24 vs. Healthco Healthcare and |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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