Correlation Between XTC Lithium and Regis Healthcare
Can any of the company-specific risk be diversified away by investing in both XTC Lithium and Regis Healthcare 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 XTC Lithium and Regis Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XTC Lithium Limited and Regis Healthcare, you can compare the effects of market volatilities on XTC Lithium and Regis Healthcare 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 XTC Lithium with a short position of Regis Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTC Lithium and Regis Healthcare.
Diversification Opportunities for XTC Lithium and Regis Healthcare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between XTC and Regis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding XTC Lithium Limited and Regis Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regis Healthcare and XTC Lithium 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 XTC Lithium Limited are associated (or correlated) with Regis Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regis Healthcare has no effect on the direction of XTC Lithium i.e., XTC Lithium and Regis Healthcare go up and down completely randomly.
Pair Corralation between XTC Lithium and Regis Healthcare
If you would invest 651.00 in Regis Healthcare on August 31, 2024 and sell it today you would earn a total of 4.00 from holding Regis Healthcare or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XTC Lithium Limited vs. Regis Healthcare
Performance |
| Timeline |
| XTC Lithium Limited |
| Regis Healthcare |
XTC Lithium and Regis Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTC Lithium and Regis Healthcare
The main advantage of trading using opposite XTC Lithium and Regis Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTC Lithium position performs unexpectedly, Regis Healthcare 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 Regis Healthcare will offset losses from the drop in Regis Healthcare's long position.| XTC Lithium vs. Regis Healthcare | XTC Lithium vs. Sonic Healthcare | XTC Lithium vs. TPG Telecom | XTC Lithium vs. Ramsay Health Care |
| Regis Healthcare vs. Pinnacle Investment Management | Regis Healthcare vs. Dicker Data | Regis Healthcare vs. ARN Media Limited | Regis Healthcare vs. Platinum Asset Management |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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