Correlation Between Regal Funds and Autosports
Can any of the company-specific risk be diversified away by investing in both Regal Funds and Autosports 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 Autosports 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 Autosports Group, you can compare the effects of market volatilities on Regal Funds and Autosports 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 Autosports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regal Funds and Autosports.
Diversification Opportunities for Regal Funds and Autosports
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Regal and Autosports is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Regal Funds Management and Autosports Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autosports Group 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 Autosports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autosports Group has no effect on the direction of Regal Funds i.e., Regal Funds and Autosports go up and down completely randomly.
Pair Corralation between Regal Funds and Autosports
Assuming the 90 days trading horizon Regal Funds Management is expected to generate 1.26 times more return on investment than Autosports. However, Regal Funds is 1.26 times more volatile than Autosports Group. It trades about 0.12 of its potential returns per unit of risk. Autosports Group is currently generating about -0.08 per unit of risk. If you would invest 276.00 in Regal Funds Management on September 3, 2024 and sell it today you would earn a total of 127.00 from holding Regal Funds Management or generate 46.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regal Funds Management vs. Autosports Group
Performance |
| Timeline |
| Regal Funds Management |
| Autosports Group |
Regal Funds and Autosports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regal Funds and Autosports
The main advantage of trading using opposite Regal Funds and Autosports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regal Funds position performs unexpectedly, Autosports 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 Autosports will offset losses from the drop in Autosports' long position.| Regal Funds vs. Audio Pixels Holdings | Regal Funds vs. Iodm | Regal Funds vs. Nsx | Regal Funds vs. TTG Fintech |
| Autosports vs. Westpac Banking | Autosports vs. Champion Iron | Autosports vs. iShares Global Healthcare | Autosports vs. Peel Mining |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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