Correlation Between Mantle Minerals and Regal Funds

Can any of the company-specific risk be diversified away by investing in both Mantle Minerals and Regal Funds 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 Mantle Minerals and Regal Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mantle Minerals Limited and Regal Funds Management, you can compare the effects of market volatilities on Mantle Minerals and Regal Funds 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 Mantle Minerals with a short position of Regal Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mantle Minerals and Regal Funds.

Diversification Opportunities for Mantle Minerals and Regal Funds

-0.27

Correlation Coefficient

Mantle Minerals  Regal Funds

Very good diversification

The 3 months correlation between Mantle and Regal is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Mantle Minerals Limited and Regal Funds Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regal Funds Management and Mantle Minerals 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 Mantle Minerals Limited are associated (or correlated) with Regal Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regal Funds Management has no effect on the direction of Mantle Minerals i.e., Mantle Minerals and Regal Funds go up and down completely randomly.

Pair Corralation between Mantle Minerals and Regal Funds

Assuming the 90 days trading horizon Mantle Minerals Limited is expected to generate 10.87 times more return on investment than Regal Funds. However, Mantle Minerals is 10.87 times more volatile than Regal Funds Management. It trades about 0.05 of its potential returns per unit of risk. Regal Funds Management is currently generating about 0.16 per unit of risk. If you would invest  0.20  in Mantle Minerals Limited on September 4, 2024 and sell it today you would lose (0.10) from holding Mantle Minerals Limited or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Mantle Minerals Limited  vs.  Regal Funds Management

Mantle Minerals

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Mantle Minerals Limited are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain essential indicators, Mantle Minerals unveiled solid returns over the last few months and may actually be approaching a breakup point.

Regal Funds Management

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Regal Funds Management are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak essential indicators, Regal Funds unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mantle Minerals and Regal Funds

The main advantage of trading using opposite Mantle Minerals and Regal Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mantle Minerals position performs unexpectedly, Regal Funds 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 Funds will offset losses from the drop in Regal Funds' long position.

The idea behind Mantle Minerals Limited and Regal Funds Management pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.