Correlation Between REGAL ASIAN and Sixt SE

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

Diversification Opportunities for REGAL ASIAN and Sixt SE

-0.26

Correlation Coefficient

REGAL ASIAN  Sixt SE

Very good diversification

The 3 months correlation between REGAL and Sixt is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and Sixt SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt SE 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 Sixt SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt SE has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and Sixt SE go up and down completely randomly.

Pair Corralation between REGAL ASIAN and Sixt SE

Assuming the 90 days trading horizon REGAL ASIAN INVESTMENTS is expected to under-perform the Sixt SE. But the stock apears to be less risky and, when comparing its historical volatility, REGAL ASIAN INVESTMENTS is 1.16 times less risky than Sixt SE. The stock trades about -0.11 of its potential returns per unit of risk. The Sixt SE is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  7,860  in Sixt SE on December 30, 2024 and sell it today you would earn a total of  225.00  from holding Sixt SE or generate 2.86% return on investment over 90 days.

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

REGAL ASIAN INVESTMENTS  vs.  Sixt SE

REGAL ASIAN INVESTMENTS

Risk-Adjusted Performance

Very Weak

Over the last 90 days REGAL ASIAN INVESTMENTS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Sixt SE

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sixt SE are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Sixt SE is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with REGAL ASIAN and Sixt SE

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

The idea behind REGAL ASIAN INVESTMENTS and Sixt SE 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.