Correlation Between REGAL ASIAN and Super Retail
Can any of the company-specific risk be diversified away by investing in both REGAL ASIAN and Super Retail 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 Super Retail 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 Super Retail Group, you can compare the effects of market volatilities on REGAL ASIAN and Super Retail 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 Super Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL ASIAN and Super Retail.
Diversification Opportunities for REGAL ASIAN and Super Retail
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between REGAL and Super is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and Super Retail Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Retail Group 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 Super Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Retail Group has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and Super Retail go up and down completely randomly.
Pair Corralation between REGAL ASIAN and Super Retail
Assuming the 90 days trading horizon REGAL ASIAN INVESTMENTS is expected to generate 0.95 times more return on investment than Super Retail. However, REGAL ASIAN INVESTMENTS is 1.05 times less risky than Super Retail. It trades about -0.02 of its potential returns per unit of risk. Super Retail Group is currently generating about -0.06 per unit of risk. If you would invest 217.00 in REGAL ASIAN INVESTMENTS on August 29, 2024 and sell it today you would lose (2.00) from holding REGAL ASIAN INVESTMENTS or give up 0.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
REGAL ASIAN INVESTMENTS vs. Super Retail Group
Performance |
| Timeline |
| REGAL ASIAN INVESTMENTS |
| Super Retail Group |
REGAL ASIAN and Super Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REGAL ASIAN and Super Retail
The main advantage of trading using opposite REGAL ASIAN and Super Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REGAL ASIAN position performs unexpectedly, Super Retail 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 Super Retail will offset losses from the drop in Super Retail'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 |
| Super Retail vs. Macquarie Group | Super Retail vs. Macquarie Group Ltd | Super Retail vs. Commonwealth Bank | Super Retail vs. Rio Tinto |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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