Correlation Between REGAL ASIAN and Wam Capital
Can any of the company-specific risk be diversified away by investing in both REGAL ASIAN and Wam Capital 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 Wam Capital 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 Wam Capital, you can compare the effects of market volatilities on REGAL ASIAN and Wam Capital 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 Wam Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL ASIAN and Wam Capital.
Diversification Opportunities for REGAL ASIAN and Wam Capital
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between REGAL and Wam is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and Wam Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wam Capital 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 Wam Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wam Capital has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and Wam Capital go up and down completely randomly.
Pair Corralation between REGAL ASIAN and Wam Capital
Assuming the 90 days trading horizon REGAL ASIAN INVESTMENTS is expected to generate 1.41 times more return on investment than Wam Capital. However, REGAL ASIAN is 1.41 times more volatile than Wam Capital. It trades about 0.04 of its potential returns per unit of risk. Wam Capital is currently generating about 0.03 per unit of risk. If you would invest 178.00 in REGAL ASIAN INVESTMENTS on September 12, 2024 and sell it today you would earn a total of 29.00 from holding REGAL ASIAN INVESTMENTS or generate 16.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
REGAL ASIAN INVESTMENTS vs. Wam Capital
Performance |
| Timeline |
| REGAL ASIAN INVESTMENTS |
| Wam Capital |
REGAL ASIAN and Wam Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REGAL ASIAN and Wam Capital
The main advantage of trading using opposite REGAL ASIAN and Wam Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REGAL ASIAN position performs unexpectedly, Wam Capital 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 Wam Capital will offset losses from the drop in Wam Capital's long position.| REGAL ASIAN vs. EVE Health Group | REGAL ASIAN vs. Apiam Animal Health | REGAL ASIAN vs. WiseTech Global Limited | REGAL ASIAN vs. Regis Healthcare |
| Wam Capital vs. Garda Diversified Ppty | Wam Capital vs. Sandon Capital Investments | Wam Capital vs. Mirrabooka Investments | Wam Capital vs. REGAL ASIAN INVESTMENTS |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| 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 |