Correlation Between REGAL ASIAN and TPG Telecom
Can any of the company-specific risk be diversified away by investing in both REGAL ASIAN and TPG Telecom 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 TPG Telecom 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 TPG Telecom, you can compare the effects of market volatilities on REGAL ASIAN and TPG Telecom 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 TPG Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL ASIAN and TPG Telecom.
Diversification Opportunities for REGAL ASIAN and TPG Telecom
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between REGAL and TPG is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and TPG Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TPG Telecom 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 TPG Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TPG Telecom has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and TPG Telecom go up and down completely randomly.
Pair Corralation between REGAL ASIAN and TPG Telecom
Assuming the 90 days trading horizon REGAL ASIAN INVESTMENTS is expected to generate 1.0 times more return on investment than TPG Telecom. However, REGAL ASIAN is 1.0 times more volatile than TPG Telecom. It trades about 0.05 of its potential returns per unit of risk. TPG Telecom is currently generating about -0.02 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
REGAL ASIAN INVESTMENTS vs. TPG Telecom
Performance |
| Timeline |
| REGAL ASIAN INVESTMENTS |
| TPG Telecom |
REGAL ASIAN and TPG Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REGAL ASIAN and TPG Telecom
The main advantage of trading using opposite REGAL ASIAN and TPG Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REGAL ASIAN position performs unexpectedly, TPG Telecom 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 TPG Telecom will offset losses from the drop in TPG Telecom's long position.| REGAL ASIAN vs. ABACUS STORAGE KING | REGAL ASIAN vs. Odyssey Energy | REGAL ASIAN vs. Champion Iron | REGAL ASIAN vs. Ridley |
| TPG Telecom vs. Pioneer Credit | TPG Telecom vs. MA Financial Group | TPG Telecom vs. Commonwealth Bank of | TPG Telecom vs. Prime Financial 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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