Correlation Between Regal Funds and Sandon Capital
Can any of the company-specific risk be diversified away by investing in both Regal Funds and Sandon Capital 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 Sandon Capital 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 Sandon Capital Investments, you can compare the effects of market volatilities on Regal Funds and Sandon Capital 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 Sandon Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regal Funds and Sandon Capital.
Diversification Opportunities for Regal Funds and Sandon Capital
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Regal and Sandon is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Regal Funds Management and Sandon Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sandon Capital Inves 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 Sandon Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sandon Capital Inves has no effect on the direction of Regal Funds i.e., Regal Funds and Sandon Capital go up and down completely randomly.
Pair Corralation between Regal Funds and Sandon Capital
Assuming the 90 days trading horizon Regal Funds is expected to generate 1.43 times less return on investment than Sandon Capital. In addition to that, Regal Funds is 1.33 times more volatile than Sandon Capital Investments. It trades about 0.03 of its total potential returns per unit of risk. Sandon Capital Investments is currently generating about 0.05 per unit of volatility. If you would invest 56.00 in Sandon Capital Investments on November 7, 2024 and sell it today you would earn a total of 25.00 from holding Sandon Capital Investments or generate 44.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Regal Funds Management vs. Sandon Capital Investments
Performance |
| Timeline |
| Regal Funds Management |
| Sandon Capital Inves |
Regal Funds and Sandon Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regal Funds and Sandon Capital
The main advantage of trading using opposite Regal Funds and Sandon Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regal Funds position performs unexpectedly, Sandon Capital 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 Sandon Capital will offset losses from the drop in Sandon Capital's long position.| Regal Funds vs. Pure Foods Tasmania | Regal Funds vs. Infomedia | Regal Funds vs. Collins Foods | Regal Funds vs. Charter Hall Retail |
| Sandon Capital vs. Hudson Investment Group | Sandon Capital vs. Vitura Health Limited | Sandon Capital vs. Ramsay Health Care | Sandon Capital vs. EVE Health Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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