Correlation Between REGAL ASIAN and ADRIATIC METALS

Can any of the company-specific risk be diversified away by investing in both REGAL ASIAN and ADRIATIC METALS 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 ADRIATIC METALS 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 ADRIATIC METALS LS 013355, you can compare the effects of market volatilities on REGAL ASIAN and ADRIATIC METALS 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 ADRIATIC METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL ASIAN and ADRIATIC METALS.

Diversification Opportunities for REGAL ASIAN and ADRIATIC METALS

0.65

Correlation Coefficient

REGAL ASIAN  ADRIATIC METALS

Poor diversification

The 3 months correlation between REGAL and ADRIATIC is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and ADRIATIC METALS LS 013355 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADRIATIC METALS LS 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 ADRIATIC METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADRIATIC METALS LS has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and ADRIATIC METALS go up and down completely randomly.

Pair Corralation between REGAL ASIAN and ADRIATIC METALS

Assuming the 90 days trading horizon REGAL ASIAN is expected to generate 8.99 times less return on investment than ADRIATIC METALS. But when comparing it to its historical volatility, REGAL ASIAN INVESTMENTS is 2.38 times less risky than ADRIATIC METALS. It trades about 0.05 of its potential returns per unit of risk. ADRIATIC METALS LS 013355 is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  162.00  in ADRIATIC METALS LS 013355 on September 12, 2024 and sell it today you would earn a total of  82.00  from holding ADRIATIC METALS LS 013355 or generate 50.62% return on investment over 90 days.

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

REGAL ASIAN INVESTMENTS  vs.  ADRIATIC METALS LS 013355

REGAL ASIAN INVESTMENTS

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in REGAL ASIAN INVESTMENTS are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, REGAL ASIAN is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

ADRIATIC METALS LS

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ADRIATIC METALS LS 013355 are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ADRIATIC METALS reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with REGAL ASIAN and ADRIATIC METALS

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

The idea behind REGAL ASIAN INVESTMENTS and ADRIATIC METALS LS 013355 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.