Correlation Between Regal Funds and ImExHS
Can any of the company-specific risk be diversified away by investing in both Regal Funds and ImExHS 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 ImExHS 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 ImExHS, you can compare the effects of market volatilities on Regal Funds and ImExHS 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 ImExHS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regal Funds and ImExHS.
Diversification Opportunities for Regal Funds and ImExHS
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Regal and ImExHS is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Regal Funds Management and ImExHS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImExHS 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 ImExHS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImExHS has no effect on the direction of Regal Funds i.e., Regal Funds and ImExHS go up and down completely randomly.
Pair Corralation between Regal Funds and ImExHS
Assuming the 90 days trading horizon Regal Funds Management is expected to generate 0.74 times more return on investment than ImExHS. However, Regal Funds Management is 1.35 times less risky than ImExHS. It trades about 0.06 of its potential returns per unit of risk. ImExHS is currently generating about -0.02 per unit of risk. If you would invest 251.00 in Regal Funds Management on August 31, 2024 and sell it today you would earn a total of 152.00 from holding Regal Funds Management or generate 60.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 91.53% |
| Values | Daily Returns |
Regal Funds Management vs. ImExHS
Performance |
| Timeline |
| Regal Funds Management |
| ImExHS |
Regal Funds and ImExHS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regal Funds and ImExHS
The main advantage of trading using opposite Regal Funds and ImExHS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regal Funds position performs unexpectedly, ImExHS 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 ImExHS will offset losses from the drop in ImExHS's long position.| Regal Funds vs. Energy Resources | Regal Funds vs. 88 Energy | Regal Funds vs. Amani Gold | Regal Funds vs. A1 Investments Resources |
| ImExHS vs. Andean Silver Limited | ImExHS vs. Hotel Property Investments | ImExHS vs. Super Retail Group | ImExHS vs. Black Rock 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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