Correlation Between STANLEY ELECTRIC and REGAL ASIAN
Can any of the company-specific risk be diversified away by investing in both STANLEY ELECTRIC and REGAL ASIAN 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 STANLEY ELECTRIC and REGAL ASIAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STANLEY ELECTRIC CO and REGAL ASIAN INVESTMENTS, you can compare the effects of market volatilities on STANLEY ELECTRIC and REGAL ASIAN 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 STANLEY ELECTRIC with a short position of REGAL ASIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of STANLEY ELECTRIC and REGAL ASIAN.
Diversification Opportunities for STANLEY ELECTRIC and REGAL ASIAN
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between STANLEY and REGAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding STANLEY ELECTRIC CO and REGAL ASIAN INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REGAL ASIAN INVESTMENTS and STANLEY ELECTRIC 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 STANLEY ELECTRIC CO are associated (or correlated) with REGAL ASIAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REGAL ASIAN INVESTMENTS has no effect on the direction of STANLEY ELECTRIC i.e., STANLEY ELECTRIC and REGAL ASIAN go up and down completely randomly.
Pair Corralation between STANLEY ELECTRIC and REGAL ASIAN
If you would invest 117.00 in REGAL ASIAN INVESTMENTS on November 28, 2024 and sell it today you would earn a total of 17.00 from holding REGAL ASIAN INVESTMENTS or generate 14.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STANLEY ELECTRIC CO vs. REGAL ASIAN INVESTMENTS
Performance |
| Timeline |
| STANLEY ELECTRIC |
| REGAL ASIAN INVESTMENTS |
STANLEY ELECTRIC and REGAL ASIAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STANLEY ELECTRIC and REGAL ASIAN
The main advantage of trading using opposite STANLEY ELECTRIC and REGAL ASIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STANLEY ELECTRIC position performs unexpectedly, REGAL ASIAN 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 REGAL ASIAN will offset losses from the drop in REGAL ASIAN's long position.| STANLEY ELECTRIC vs. SCANSOURCE | STANLEY ELECTRIC vs. Ares Management Corp | STANLEY ELECTRIC vs. Thai Beverage Public | STANLEY ELECTRIC vs. Coor Service Management |
| REGAL ASIAN vs. Richardson Electronics | REGAL ASIAN vs. METHODE ELECTRONICS | REGAL ASIAN vs. STMicroelectronics NV | REGAL ASIAN vs. Agilent Technologies |
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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