Correlation Between REGAL ASIAN and Seven West
Can any of the company-specific risk be diversified away by investing in both REGAL ASIAN and Seven West 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 Seven West 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 Seven West Media, you can compare the effects of market volatilities on REGAL ASIAN and Seven West 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 Seven West. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL ASIAN and Seven West.
Diversification Opportunities for REGAL ASIAN and Seven West
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between REGAL and Seven is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and Seven West Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seven West Media 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 Seven West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seven West Media has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and Seven West go up and down completely randomly.
Pair Corralation between REGAL ASIAN and Seven West
Assuming the 90 days trading horizon REGAL ASIAN INVESTMENTS is expected to generate 0.51 times more return on investment than Seven West. However, REGAL ASIAN INVESTMENTS is 1.97 times less risky than Seven West. It trades about 0.05 of its potential returns per unit of risk. Seven West Media is currently generating about -0.01 per unit of risk. If you would invest 206.00 in REGAL ASIAN INVESTMENTS on August 29, 2024 and sell it today you would earn a total of 9.00 from holding REGAL ASIAN INVESTMENTS or generate 4.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
REGAL ASIAN INVESTMENTS vs. Seven West Media
Performance |
| Timeline |
| REGAL ASIAN INVESTMENTS |
| Seven West Media |
REGAL ASIAN and Seven West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REGAL ASIAN and Seven West
The main advantage of trading using opposite REGAL ASIAN and Seven West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REGAL ASIAN position performs unexpectedly, Seven West 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 Seven West will offset losses from the drop in Seven West's long position.| REGAL ASIAN vs. ABACUS STORAGE KING | REGAL ASIAN vs. Odyssey Energy | REGAL ASIAN vs. Champion Iron | REGAL ASIAN vs. Ridley |
| Seven West vs. PVW Resources | Seven West vs. Woolworths | Seven West vs. Wesfarmers | Seven West vs. Coles Group |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |