Correlation Between REGAL ASIAN and FSA
Can any of the company-specific risk be diversified away by investing in both REGAL ASIAN and FSA 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 ASIAN and FSA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REGAL ASIAN INVESTMENTS and FSA Group, you can compare the effects of market volatilities on REGAL ASIAN and FSA 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 ASIAN with a short position of FSA. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL ASIAN and FSA.
Diversification Opportunities for REGAL ASIAN and FSA
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between REGAL and FSA is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and FSA Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FSA Group and REGAL ASIAN 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 ASIAN INVESTMENTS are associated (or correlated) with FSA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FSA Group has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and FSA go up and down completely randomly.
Pair Corralation between REGAL ASIAN and FSA
Assuming the 90 days trading horizon REGAL ASIAN INVESTMENTS is expected to under-perform the FSA. In addition to that, REGAL ASIAN is 1.22 times more volatile than FSA Group. It trades about -0.26 of its total potential returns per unit of risk. FSA Group is currently generating about -0.17 per unit of volatility. If you would invest 84.00 in FSA Group on September 7, 2024 and sell it today you would lose (4.00) from holding FSA Group or give up 4.76% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
REGAL ASIAN INVESTMENTS vs. FSA Group
Performance |
Timeline |
REGAL ASIAN INVESTMENTS |
FSA Group |
REGAL ASIAN and FSA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with REGAL ASIAN and FSA
The main advantage of trading using opposite REGAL ASIAN and FSA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REGAL ASIAN position performs unexpectedly, FSA 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 FSA will offset losses from the drop in FSA's long position.REGAL ASIAN vs. Seven West Media | REGAL ASIAN vs. Global Data Centre | REGAL ASIAN vs. Healthco Healthcare and | REGAL ASIAN vs. Singular Health Group |
FSA vs. Charter Hall Education | FSA vs. G8 Education | FSA vs. Clime Investment Management | FSA vs. Alternative Investment Trust |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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