Correlation Between REGAL ASIAN and Platinum Asia
Can any of the company-specific risk be diversified away by investing in both REGAL ASIAN and Platinum Asia 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 Platinum Asia 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 Platinum Asia Investments, you can compare the effects of market volatilities on REGAL ASIAN and Platinum Asia 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 Platinum Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL ASIAN and Platinum Asia.
Diversification Opportunities for REGAL ASIAN and Platinum Asia
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between REGAL and Platinum is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and Platinum Asia Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Asia Investments 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 Platinum Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Asia Investments has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and Platinum Asia go up and down completely randomly.
Pair Corralation between REGAL ASIAN and Platinum Asia
Assuming the 90 days trading horizon REGAL ASIAN is expected to generate 1.24 times less return on investment than Platinum Asia. In addition to that, REGAL ASIAN is 1.12 times more volatile than Platinum Asia Investments. It trades about 0.03 of its total potential returns per unit of risk. Platinum Asia Investments is currently generating about 0.04 per unit of volatility. If you would invest 84.00 in Platinum Asia Investments on November 19, 2024 and sell it today you would earn a total of 21.00 from holding Platinum Asia Investments or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
REGAL ASIAN INVESTMENTS vs. Platinum Asia Investments
Performance |
| Timeline |
| REGAL ASIAN INVESTMENTS |
| Platinum Asia Investments |
REGAL ASIAN and Platinum Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REGAL ASIAN and Platinum Asia
The main advantage of trading using opposite REGAL ASIAN and Platinum Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REGAL ASIAN position performs unexpectedly, Platinum Asia 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 Platinum Asia will offset losses from the drop in Platinum Asia's long position.| REGAL ASIAN vs. Navigator Global Investments | REGAL ASIAN vs. BKI Investment | REGAL ASIAN vs. Pinnacle Investment Management | REGAL ASIAN vs. Diversified United Investment |
| Platinum Asia vs. ChemX Materials | Platinum Asia vs. WiseTech Global Limited | Platinum Asia vs. Energy Technologies Limited | Platinum Asia vs. Mach7 Technologies |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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