Correlation Between Regal Funds and Charter Hall
Can any of the company-specific risk be diversified away by investing in both Regal Funds and Charter Hall 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 Charter Hall 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 Charter Hall Long, you can compare the effects of market volatilities on Regal Funds and Charter Hall 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 Charter Hall. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regal Funds and Charter Hall.
Diversification Opportunities for Regal Funds and Charter Hall
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Regal and Charter is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Regal Funds Management and Charter Hall Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charter Hall Long 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 Charter Hall. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charter Hall Long has no effect on the direction of Regal Funds i.e., Regal Funds and Charter Hall go up and down completely randomly.
Pair Corralation between Regal Funds and Charter Hall
Assuming the 90 days trading horizon Regal Funds Management is expected to generate 1.63 times more return on investment than Charter Hall. However, Regal Funds is 1.63 times more volatile than Charter Hall Long. It trades about 0.03 of its potential returns per unit of risk. Charter Hall Long is currently generating about 0.01 per unit of risk. If you would invest 327.00 in Regal Funds Management on September 3, 2024 and sell it today you would earn a total of 76.00 from holding Regal Funds Management or generate 23.24% 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. Charter Hall Long
Performance |
| Timeline |
| Regal Funds Management |
| Charter Hall Long |
Regal Funds and Charter Hall Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regal Funds and Charter Hall
The main advantage of trading using opposite Regal Funds and Charter Hall positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regal Funds position performs unexpectedly, Charter Hall 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 Charter Hall will offset losses from the drop in Charter Hall's long position.| Regal Funds vs. Audio Pixels Holdings | Regal Funds vs. Iodm | Regal Funds vs. TTG Fintech | Regal Funds vs. Mantle Minerals Limited |
| Charter Hall vs. Skycity Entertainment Group | Charter Hall vs. Actinogen Medical | Charter Hall vs. Alto Metals | Charter Hall vs. 29Metals |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stocks Directory Find actively traded stocks across global markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |