Correlation Between Regal Investment and Actinogen Medical
Can any of the company-specific risk be diversified away by investing in both Regal Investment and Actinogen Medical 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 Regal Investment and Actinogen Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regal Investment and Actinogen Medical, you can compare the effects of market volatilities on Regal Investment and Actinogen Medical 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 Regal Investment with a short position of Actinogen Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regal Investment and Actinogen Medical.
Diversification Opportunities for Regal Investment and Actinogen Medical
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Regal and Actinogen is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Regal Investment and Actinogen Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actinogen Medical and Regal Investment 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 Regal Investment are associated (or correlated) with Actinogen Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actinogen Medical has no effect on the direction of Regal Investment i.e., Regal Investment and Actinogen Medical go up and down completely randomly.
Pair Corralation between Regal Investment and Actinogen Medical
Assuming the 90 days trading horizon Regal Investment is expected to generate 0.18 times more return on investment than Actinogen Medical. However, Regal Investment is 5.54 times less risky than Actinogen Medical. It trades about 0.04 of its potential returns per unit of risk. Actinogen Medical is currently generating about 0.0 per unit of risk. If you would invest 260.00 in Regal Investment on September 24, 2024 and sell it today you would earn a total of 77.00 from holding Regal Investment or generate 29.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 99.8% |
Values | Daily Returns |
Regal Investment vs. Actinogen Medical
Performance |
Timeline |
Regal Investment |
Actinogen Medical |
Regal Investment and Actinogen Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Regal Investment and Actinogen Medical
The main advantage of trading using opposite Regal Investment and Actinogen Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regal Investment position performs unexpectedly, Actinogen Medical 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 Actinogen Medical will offset losses from the drop in Actinogen Medical's long position.Regal Investment vs. Westpac Banking | Regal Investment vs. ABACUS STORAGE KING | Regal Investment vs. Odyssey Energy | Regal Investment vs. Sandfire Resources NL |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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