Correlation Between Regal Funds and Avenira
Can any of the company-specific risk be diversified away by investing in both Regal Funds and Avenira 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 Funds and Avenira into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regal Funds Management and Avenira, you can compare the effects of market volatilities on Regal Funds and Avenira 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 Funds with a short position of Avenira. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regal Funds and Avenira.
Diversification Opportunities for Regal Funds and Avenira
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Regal and Avenira is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Regal Funds Management and Avenira in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avenira and Regal Funds 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 Funds Management are associated (or correlated) with Avenira. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avenira has no effect on the direction of Regal Funds i.e., Regal Funds and Avenira go up and down completely randomly.
Pair Corralation between Regal Funds and Avenira
Assuming the 90 days trading horizon Regal Funds Management is expected to under-perform the Avenira. But the stock apears to be less risky and, when comparing its historical volatility, Regal Funds Management is 1.33 times less risky than Avenira. The stock trades about -0.09 of its potential returns per unit of risk. The Avenira is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 0.80 in Avenira on December 4, 2024 and sell it today you would lose (0.10) from holding Avenira or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regal Funds Management vs. Avenira
Performance |
| Timeline |
| Regal Funds Management |
| Avenira |
Regal Funds and Avenira Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regal Funds and Avenira
The main advantage of trading using opposite Regal Funds and Avenira positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regal Funds position performs unexpectedly, Avenira 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 Avenira will offset losses from the drop in Avenira's long position.| Regal Funds vs. Air New Zealand | Regal Funds vs. Dexus Convenience Retail | Regal Funds vs. Globe Metals Mining | Regal Funds vs. Tambourah Metals |
| Avenira vs. Hansen Technologies | Avenira vs. Microequities Asset Management | Avenira vs. Dug Technology | Avenira vs. Technology One |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |