Correlation Between Regal Funds and Betmakers Technology
Can any of the company-specific risk be diversified away by investing in both Regal Funds and Betmakers Technology 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 Betmakers Technology 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 Betmakers Technology Group, you can compare the effects of market volatilities on Regal Funds and Betmakers Technology 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 Betmakers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regal Funds and Betmakers Technology.
Diversification Opportunities for Regal Funds and Betmakers Technology
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Regal and Betmakers is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Regal Funds Management and Betmakers Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Betmakers Technology 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 Betmakers Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Betmakers Technology has no effect on the direction of Regal Funds i.e., Regal Funds and Betmakers Technology go up and down completely randomly.
Pair Corralation between Regal Funds and Betmakers Technology
Assuming the 90 days trading horizon Regal Funds is expected to generate 2.15 times less return on investment than Betmakers Technology. But when comparing it to its historical volatility, Regal Funds Management is 2.16 times less risky than Betmakers Technology. It trades about 0.19 of its potential returns per unit of risk. Betmakers Technology Group is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Betmakers Technology Group on November 3, 2024 and sell it today you would earn a total of 2.00 from holding Betmakers Technology Group or generate 18.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regal Funds Management vs. Betmakers Technology Group
Performance |
| Timeline |
| Regal Funds Management |
| Betmakers Technology |
Regal Funds and Betmakers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regal Funds and Betmakers Technology
The main advantage of trading using opposite Regal Funds and Betmakers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regal Funds position performs unexpectedly, Betmakers Technology 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 Betmakers Technology will offset losses from the drop in Betmakers Technology'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 |
| Betmakers Technology vs. Perseus Mining | Betmakers Technology vs. EMvision Medical Devices | Betmakers Technology vs. Argo Investments | Betmakers Technology vs. Galena 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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