Correlation Between Regal Funds and Ambertech
Can any of the company-specific risk be diversified away by investing in both Regal Funds and Ambertech 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 Ambertech 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 Ambertech, you can compare the effects of market volatilities on Regal Funds and Ambertech 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 Ambertech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regal Funds and Ambertech.
Diversification Opportunities for Regal Funds and Ambertech
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Regal and Ambertech is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Regal Funds Management and Ambertech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambertech 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 Ambertech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambertech has no effect on the direction of Regal Funds i.e., Regal Funds and Ambertech go up and down completely randomly.
Pair Corralation between Regal Funds and Ambertech
Assuming the 90 days trading horizon Regal Funds Management is expected to generate 0.54 times more return on investment than Ambertech. However, Regal Funds Management is 1.84 times less risky than Ambertech. It trades about 0.19 of its potential returns per unit of risk. Ambertech is currently generating about 0.02 per unit of risk. If you would invest 357.00 in Regal Funds Management on November 3, 2024 and sell it today you would earn a total of 31.00 from holding Regal Funds Management or generate 8.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regal Funds Management vs. Ambertech
Performance |
| Timeline |
| Regal Funds Management |
| Ambertech |
Regal Funds and Ambertech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regal Funds and Ambertech
The main advantage of trading using opposite Regal Funds and Ambertech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regal Funds position performs unexpectedly, Ambertech 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 Ambertech will offset losses from the drop in Ambertech's long position.| Regal Funds vs. Platinum Asia Investments | Regal Funds vs. Diversified United Investment | Regal Funds vs. Technology One | Regal Funds vs. Djerriwarrh Investments |
| Ambertech vs. Bailador Technology Invest | Ambertech vs. MetalsGrove Mining | Ambertech vs. Sports Entertainment Group | Ambertech vs. Advanced Braking Technology |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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