Correlation Between Regis Healthcare and Nsx
Can any of the company-specific risk be diversified away by investing in both Regis Healthcare and Nsx 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 Regis Healthcare and Nsx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regis Healthcare and Nsx, you can compare the effects of market volatilities on Regis Healthcare and Nsx 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 Regis Healthcare with a short position of Nsx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regis Healthcare and Nsx.
Diversification Opportunities for Regis Healthcare and Nsx
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Regis and Nsx is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Regis Healthcare and Nsx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nsx and Regis Healthcare 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 Regis Healthcare are associated (or correlated) with Nsx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nsx has no effect on the direction of Regis Healthcare i.e., Regis Healthcare and Nsx go up and down completely randomly.
Pair Corralation between Regis Healthcare and Nsx
Assuming the 90 days trading horizon Regis Healthcare is expected to generate 3.06 times less return on investment than Nsx. But when comparing it to its historical volatility, Regis Healthcare is 4.04 times less risky than Nsx. It trades about 0.18 of its potential returns per unit of risk. Nsx is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1.50 in Nsx on September 11, 2024 and sell it today you would earn a total of 1.00 from holding Nsx or generate 66.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Regis Healthcare vs. Nsx
Performance |
Timeline |
Regis Healthcare |
Nsx |
Regis Healthcare and Nsx Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Regis Healthcare and Nsx
The main advantage of trading using opposite Regis Healthcare and Nsx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regis Healthcare position performs unexpectedly, Nsx 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 Nsx will offset losses from the drop in Nsx's long position.Regis Healthcare vs. Retail Food Group | Regis Healthcare vs. Stelar Metals | Regis Healthcare vs. Computershare | Regis Healthcare vs. Duxton Broadacre Farms |
Nsx vs. Oneview Healthcare PLC | Nsx vs. Ramsay Health Care | Nsx vs. Truscott Mining Corp | Nsx vs. BTC Health Limited |
Check out your portfolio center.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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |