Correlation Between Regal Funds and Nine Entertainment
Can any of the company-specific risk be diversified away by investing in both Regal Funds and Nine Entertainment 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 Nine Entertainment 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 Nine Entertainment Co, you can compare the effects of market volatilities on Regal Funds and Nine Entertainment 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 Nine Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regal Funds and Nine Entertainment.
Diversification Opportunities for Regal Funds and Nine Entertainment
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Regal and Nine is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Regal Funds Management and Nine Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nine Entertainment 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 Nine Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nine Entertainment has no effect on the direction of Regal Funds i.e., Regal Funds and Nine Entertainment go up and down completely randomly.
Pair Corralation between Regal Funds and Nine Entertainment
Assuming the 90 days trading horizon Regal Funds Management is expected to generate 1.45 times more return on investment than Nine Entertainment. However, Regal Funds is 1.45 times more volatile than Nine Entertainment Co. It trades about -0.01 of its potential returns per unit of risk. Nine Entertainment Co is currently generating about -0.02 per unit of risk. If you would invest 295.00 in Regal Funds Management on January 15, 2025 and sell it today you would lose (101.00) from holding Regal Funds Management or give up 34.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regal Funds Management vs. Nine Entertainment Co
Performance |
| Timeline |
| Regal Funds Management |
| Nine Entertainment |
Regal Funds and Nine Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regal Funds and Nine Entertainment
The main advantage of trading using opposite Regal Funds and Nine Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regal Funds position performs unexpectedly, Nine Entertainment 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 Nine Entertainment will offset losses from the drop in Nine Entertainment's long position.| Regal Funds vs. Polymetals Resources | Regal Funds vs. Apiam Animal Health | Regal Funds vs. ACDC Metals | Regal Funds vs. Aeon Metals |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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