Correlation Between Apple and REGAL ASIAN

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

By analyzing existing cross correlation between Apple Inc and REGAL ASIAN INVESTMENTS, you can compare the effects of market volatilities on Apple and REGAL ASIAN 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 Apple with a short position of REGAL ASIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and REGAL ASIAN.

Diversification Opportunities for Apple and REGAL ASIAN

0.47

Correlation Coefficient

Apple  REGAL ASIAN

Very weak diversification

The 3 months correlation between Apple and REGAL is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and REGAL ASIAN INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REGAL ASIAN INVESTMENTS and Apple 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 Apple Inc are associated (or correlated) with REGAL ASIAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REGAL ASIAN INVESTMENTS has no effect on the direction of Apple i.e., Apple and REGAL ASIAN go up and down completely randomly.

Pair Corralation between Apple and REGAL ASIAN

Assuming the 90 days trading horizon Apple Inc is expected to under-perform the REGAL ASIAN. In addition to that, Apple is 1.12 times more volatile than REGAL ASIAN INVESTMENTS. It trades about -0.13 of its total potential returns per unit of risk. REGAL ASIAN INVESTMENTS is currently generating about -0.01 per unit of volatility. If you would invest  113.00  in REGAL ASIAN INVESTMENTS on December 26, 2024 and sell it today you would lose (2.00) from holding REGAL ASIAN INVESTMENTS or give up 1.77% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Apple Inc  vs.  REGAL ASIAN INVESTMENTS

Apple Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's fundamental indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

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 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.

Pair Trading with Apple and REGAL ASIAN

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

The idea behind Apple Inc and REGAL ASIAN INVESTMENTS 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.