Correlation Between Regal Funds and Super Retail
Can any of the company-specific risk be diversified away by investing in both Regal Funds and Super Retail 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 Super Retail 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 Super Retail Group, you can compare the effects of market volatilities on Regal Funds and Super Retail 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 Super Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regal Funds and Super Retail.
Diversification Opportunities for Regal Funds and Super Retail
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Regal and Super is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Regal Funds Management and Super Retail Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Retail Group 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 Super Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Retail Group has no effect on the direction of Regal Funds i.e., Regal Funds and Super Retail go up and down completely randomly.
Pair Corralation between Regal Funds and Super Retail
Assuming the 90 days trading horizon Regal Funds is expected to generate 1.74 times less return on investment than Super Retail. In addition to that, Regal Funds is 1.36 times more volatile than Super Retail Group. It trades about 0.02 of its total potential returns per unit of risk. Super Retail Group is currently generating about 0.06 per unit of volatility. If you would invest 969.00 in Super Retail Group on September 14, 2024 and sell it today you would earn a total of 504.00 from holding Super Retail Group or generate 52.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regal Funds Management vs. Super Retail Group
Performance |
| Timeline |
| Regal Funds Management |
| Super Retail Group |
Regal Funds and Super Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regal Funds and Super Retail
The main advantage of trading using opposite Regal Funds and Super Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regal Funds position performs unexpectedly, Super Retail 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 Super Retail will offset losses from the drop in Super Retail's long position.| Regal Funds vs. Audio Pixels Holdings | Regal Funds vs. Iodm | Regal Funds vs. Nsx | Regal Funds vs. TTG Fintech |
| Super Retail vs. Legacy Iron Ore | Super Retail vs. Regal Funds Management | Super Retail vs. Carawine Resources Limited | Super Retail vs. Tombador Iron |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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