Correlation Between Regal Funds and Bell Financial
Can any of the company-specific risk be diversified away by investing in both Regal Funds and Bell Financial 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 Bell Financial 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 Bell Financial Group, you can compare the effects of market volatilities on Regal Funds and Bell Financial 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 Bell Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regal Funds and Bell Financial.
Diversification Opportunities for Regal Funds and Bell Financial
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Regal and Bell is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Regal Funds Management and Bell Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bell Financial 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 Bell Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bell Financial Group has no effect on the direction of Regal Funds i.e., Regal Funds and Bell Financial go up and down completely randomly.
Pair Corralation between Regal Funds and Bell Financial
Assuming the 90 days trading horizon Regal Funds Management is expected to generate 2.08 times more return on investment than Bell Financial. However, Regal Funds is 2.08 times more volatile than Bell Financial Group. It trades about 0.1 of its potential returns per unit of risk. Bell Financial Group is currently generating about 0.08 per unit of risk. If you would invest 374.00 in Regal Funds Management on November 4, 2024 and sell it today you would earn a total of 14.00 from holding Regal Funds Management or generate 3.74% 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. Bell Financial Group
Performance |
| Timeline |
| Regal Funds Management |
| Bell Financial Group |
Regal Funds and Bell Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regal Funds and Bell Financial
The main advantage of trading using opposite Regal Funds and Bell Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regal Funds position performs unexpectedly, Bell Financial 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 Bell Financial will offset losses from the drop in Bell Financial's long position.| Regal Funds vs. Sports Entertainment Group | Regal Funds vs. Queste Communications | Regal Funds vs. Aussie Broadband | Regal Funds vs. Aeon Metals |
| Bell Financial vs. Super Retail Group | Bell Financial vs. Galena Mining | Bell Financial vs. Hotel Property Investments | Bell Financial vs. MetalsGrove 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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