Correlation Between My Foodie and Regal Funds

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

By analyzing existing cross correlation between My Foodie Box and Regal Funds Management, you can compare the effects of market volatilities on My Foodie and Regal Funds 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 My Foodie with a short position of Regal Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of My Foodie and Regal Funds.

Diversification Opportunities for My Foodie and Regal Funds

0.0

Correlation Coefficient

My Foodie  Regal Funds

Pay attention - limited upside

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

Pair Corralation between My Foodie and Regal Funds

If you would invest  356.00  in Regal Funds Management on September 3, 2024 and sell it today you would earn a total of  47.00  from holding Regal Funds Management or generate 13.2% return on investment over 90 days.

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

My Foodie Box  vs.  Regal Funds Management

My Foodie Box

Risk-Adjusted Performance

0 of 100

Very Weak

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

Regal Funds Management

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Regal Funds Management are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain essential indicators, Regal Funds unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with My Foodie and Regal Funds

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

The idea behind My Foodie Box and Regal Funds Management 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.