Correlation Between Regal Funds and Resource Base
Can any of the company-specific risk be diversified away by investing in both Regal Funds and Resource Base 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 Resource Base 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 Resource Base, you can compare the effects of market volatilities on Regal Funds and Resource Base 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 Resource Base. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regal Funds and Resource Base.
Diversification Opportunities for Regal Funds and Resource Base
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Regal and Resource is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Regal Funds Management and Resource Base in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Resource Base 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 Resource Base. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Resource Base has no effect on the direction of Regal Funds i.e., Regal Funds and Resource Base go up and down completely randomly.
Pair Corralation between Regal Funds and Resource Base
Assuming the 90 days trading horizon Regal Funds Management is expected to generate 0.42 times more return on investment than Resource Base. However, Regal Funds Management is 2.35 times less risky than Resource Base. It trades about 0.02 of its potential returns per unit of risk. Resource Base is currently generating about 0.0 per unit of risk. If you would invest 337.00 in Regal Funds Management on October 11, 2024 and sell it today you would earn a total of 33.00 from holding Regal Funds Management or generate 9.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regal Funds Management vs. Resource Base
Performance |
| Timeline |
| Regal Funds Management |
| Resource Base |
Regal Funds and Resource Base Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regal Funds and Resource Base
The main advantage of trading using opposite Regal Funds and Resource Base positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regal Funds position performs unexpectedly, Resource Base 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 Resource Base will offset losses from the drop in Resource Base's long position.| Regal Funds vs. Austco Healthcare | Regal Funds vs. Centrex Metals | Regal Funds vs. Collins Foods | Regal Funds vs. Stelar Metals |
| Resource Base vs. Regal Funds Management | Resource Base vs. Microequities Asset Management | Resource Base vs. EROAD | Resource Base vs. Sonic Healthcare |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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