Correlation Between Olivers Real and REGAL ASIAN

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

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

Diversification Opportunities for Olivers Real and REGAL ASIAN

0.12

Correlation Coefficient

Olivers Real  REGAL ASIAN

Average diversification

The 3 months correlation between Olivers and REGAL is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Olivers Real Food 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 Olivers Real 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 Olivers Real Food 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 Olivers Real i.e., Olivers Real and REGAL ASIAN go up and down completely randomly.

Pair Corralation between Olivers Real and REGAL ASIAN

Assuming the 90 days trading horizon Olivers Real Food is expected to under-perform the REGAL ASIAN. In addition to that, Olivers Real is 5.35 times more volatile than REGAL ASIAN INVESTMENTS. It trades about -0.06 of its total potential returns per unit of risk. REGAL ASIAN INVESTMENTS is currently generating about -0.09 per unit of volatility. If you would invest  206.00  in REGAL ASIAN INVESTMENTS on December 30, 2024 and sell it today you would lose (15.00) from holding REGAL ASIAN INVESTMENTS or give up 7.28% of portfolio value over 90 days.

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

Olivers Real Food  vs.  REGAL ASIAN INVESTMENTS

Olivers Real Food

Risk-Adjusted Performance

Very Weak

Over the last 90 days Olivers Real Food has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's forward indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private 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. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Olivers Real and REGAL ASIAN

The main advantage of trading using opposite Olivers Real and REGAL ASIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olivers Real 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 Olivers Real Food 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.