Correlation Between Regal Funds and Embark Education
Can any of the company-specific risk be diversified away by investing in both Regal Funds and Embark Education 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 Embark Education 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 Embark Education Group, you can compare the effects of market volatilities on Regal Funds and Embark Education 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 Embark Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regal Funds and Embark Education.
Diversification Opportunities for Regal Funds and Embark Education
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Regal and Embark is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Regal Funds Management and Embark Education Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embark Education 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 Embark Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embark Education has no effect on the direction of Regal Funds i.e., Regal Funds and Embark Education go up and down completely randomly.
Pair Corralation between Regal Funds and Embark Education
Assuming the 90 days trading horizon Regal Funds Management is expected to generate 1.8 times more return on investment than Embark Education. However, Regal Funds is 1.8 times more volatile than Embark Education Group. It trades about 0.1 of its potential returns per unit of risk. Embark Education Group is currently generating about 0.01 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regal Funds Management vs. Embark Education Group
Performance |
| Timeline |
| Regal Funds Management |
| Embark Education |
Regal Funds and Embark Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regal Funds and Embark Education
The main advantage of trading using opposite Regal Funds and Embark Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regal Funds position performs unexpectedly, Embark Education 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 Embark Education will offset losses from the drop in Embark Education'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 |
| Embark Education vs. COAST ENTERTAINMENT HOLDINGS | Embark Education vs. oOhMedia | Embark Education vs. Iron Road | Embark Education vs. Southern Cross Media |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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