Correlation Between REGAL ASIAN and Infomedia
Can any of the company-specific risk be diversified away by investing in both REGAL ASIAN and Infomedia 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 Infomedia 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 Infomedia, you can compare the effects of market volatilities on REGAL ASIAN and Infomedia 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 Infomedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL ASIAN and Infomedia.
Diversification Opportunities for REGAL ASIAN and Infomedia
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between REGAL and Infomedia is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and Infomedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infomedia 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 Infomedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infomedia has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and Infomedia go up and down completely randomly.
Pair Corralation between REGAL ASIAN and Infomedia
Assuming the 90 days trading horizon REGAL ASIAN INVESTMENTS is expected to generate 0.57 times more return on investment than Infomedia. However, REGAL ASIAN INVESTMENTS is 1.76 times less risky than Infomedia. It trades about 0.04 of its potential returns per unit of risk. Infomedia is currently generating about 0.01 per unit of risk. If you would invest 181.00 in REGAL ASIAN INVESTMENTS on August 29, 2024 and sell it today you would earn a total of 34.00 from holding REGAL ASIAN INVESTMENTS or generate 18.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
REGAL ASIAN INVESTMENTS vs. Infomedia
Performance |
| Timeline |
| REGAL ASIAN INVESTMENTS |
| Infomedia |
REGAL ASIAN and Infomedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REGAL ASIAN and Infomedia
The main advantage of trading using opposite REGAL ASIAN and Infomedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REGAL ASIAN position performs unexpectedly, Infomedia 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 Infomedia will offset losses from the drop in Infomedia's long position.| REGAL ASIAN vs. ABACUS STORAGE KING | REGAL ASIAN vs. Odyssey Energy | REGAL ASIAN vs. Hotel Property Investments | REGAL ASIAN vs. Origin Energy |
| Infomedia vs. Advanced Braking Technology | Infomedia vs. Computershare | Infomedia vs. Microequities Asset Management | Infomedia vs. Carawine Resources Limited |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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