Correlation Between FlexShares Core and Regents Park

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

By analyzing existing cross correlation between FlexShares Core Select and Regents Park Funds, you can compare the effects of market volatilities on FlexShares Core and Regents Park 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 FlexShares Core with a short position of Regents Park. Check out your portfolio center. Please also check ongoing floating volatility patterns of FlexShares Core and Regents Park.

Diversification Opportunities for FlexShares Core and Regents Park

0.0

Correlation Coefficient

FlexShares Core  Regents Park

Pay attention - limited upside

The 3 months correlation between FlexShares and Regents is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FlexShares Core Select and Regents Park Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regents Park Funds and FlexShares Core 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 FlexShares Core Select are associated (or correlated) with Regents Park. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regents Park Funds has no effect on the direction of FlexShares Core i.e., FlexShares Core and Regents Park go up and down completely randomly.

Pair Corralation between FlexShares Core and Regents Park

If you would invest  2,155  in FlexShares Core Select on December 27, 2024 and sell it today you would earn a total of  48.00  from holding FlexShares Core Select or generate 2.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

FlexShares Core Select  vs.  Regents Park Funds

FlexShares Core Select

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in FlexShares Core Select are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, FlexShares Core is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Regents Park Funds

Risk-Adjusted Performance

Very Weak

Over the last 90 days Regents Park Funds has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, Regents Park is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with FlexShares Core and Regents Park

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

The idea behind FlexShares Core Select and Regents Park Funds 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.