Correlation Between FANDIFI TECHNOLOGY and REGAL ASIAN
Can any of the company-specific risk be diversified away by investing in both FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY and REGAL ASIAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FANDIFI TECHNOLOGY P and REGAL ASIAN INVESTMENTS, you can compare the effects of market volatilities on FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY with a short position of REGAL ASIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of FANDIFI TECHNOLOGY and REGAL ASIAN.
Diversification Opportunities for FANDIFI TECHNOLOGY and REGAL ASIAN
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FANDIFI and REGAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FANDIFI TECHNOLOGY P 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 FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY P 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 FANDIFI TECHNOLOGY i.e., FANDIFI TECHNOLOGY and REGAL ASIAN go up and down completely randomly.
Pair Corralation between FANDIFI TECHNOLOGY and REGAL ASIAN
If you would invest 129.00 in REGAL ASIAN INVESTMENTS on August 29, 2024 and sell it today you would earn a total of 3.00 from holding REGAL ASIAN INVESTMENTS or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
FANDIFI TECHNOLOGY P vs. REGAL ASIAN INVESTMENTS
Performance |
| Timeline |
| FANDIFI TECHNOLOGY |
| REGAL ASIAN INVESTMENTS |
FANDIFI TECHNOLOGY and REGAL ASIAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FANDIFI TECHNOLOGY and REGAL ASIAN
The main advantage of trading using opposite FANDIFI TECHNOLOGY and REGAL ASIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FANDIFI TECHNOLOGY 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.| FANDIFI TECHNOLOGY vs. CANON MARKETING JP | FANDIFI TECHNOLOGY vs. Salesforce | FANDIFI TECHNOLOGY vs. Vastned Retail NV | FANDIFI TECHNOLOGY vs. RETAIL FOOD GROUP |
| REGAL ASIAN vs. Apple Inc | REGAL ASIAN vs. Apple Inc | REGAL ASIAN vs. Apple Inc | REGAL ASIAN vs. Apple Inc |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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