Correlation Between TPG Telecom and REGAL ASIAN
Can any of the company-specific risk be diversified away by investing in both TPG Telecom 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 TPG Telecom and REGAL ASIAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TPG Telecom and REGAL ASIAN INVESTMENTS, you can compare the effects of market volatilities on TPG Telecom 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 TPG Telecom with a short position of REGAL ASIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of TPG Telecom and REGAL ASIAN.
Diversification Opportunities for TPG Telecom and REGAL ASIAN
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TPG and REGAL is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding TPG Telecom 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 TPG Telecom 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 TPG Telecom 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 TPG Telecom i.e., TPG Telecom and REGAL ASIAN go up and down completely randomly.
Pair Corralation between TPG Telecom and REGAL ASIAN
Assuming the 90 days trading horizon TPG Telecom is expected to under-perform the REGAL ASIAN. In addition to that, TPG Telecom is 1.15 times more volatile than REGAL ASIAN INVESTMENTS. It trades about 0.0 of its total potential returns per unit of risk. REGAL ASIAN INVESTMENTS is currently generating about 0.06 per unit of volatility. If you would invest 193.00 in REGAL ASIAN INVESTMENTS on August 25, 2024 and sell it today you would earn a total of 25.00 from holding REGAL ASIAN INVESTMENTS or generate 12.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TPG Telecom vs. REGAL ASIAN INVESTMENTS
Performance |
| Timeline |
| TPG Telecom |
| REGAL ASIAN INVESTMENTS |
TPG Telecom and REGAL ASIAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TPG Telecom and REGAL ASIAN
The main advantage of trading using opposite TPG Telecom and REGAL ASIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TPG Telecom 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.| TPG Telecom vs. National Australia Bank | TPG Telecom vs. National Australia Bank | TPG Telecom vs. Westpac Banking | TPG Telecom vs. National Australia Bank |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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