Correlation Between REGAL ASIAN and Cleanaway Waste

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

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

Diversification Opportunities for REGAL ASIAN and Cleanaway Waste

-0.45

Correlation Coefficient

REGAL ASIAN  Cleanaway Waste

Very good diversification

The 3 months correlation between REGAL and Cleanaway is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and Cleanaway Waste Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleanaway Waste Mana and REGAL ASIAN 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 REGAL ASIAN INVESTMENTS are associated (or correlated) with Cleanaway Waste. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleanaway Waste Mana has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and Cleanaway Waste go up and down completely randomly.

Pair Corralation between REGAL ASIAN and Cleanaway Waste

Assuming the 90 days trading horizon REGAL ASIAN INVESTMENTS is expected to generate 1.46 times more return on investment than Cleanaway Waste. However, REGAL ASIAN is 1.46 times more volatile than Cleanaway Waste Management. It trades about 0.07 of its potential returns per unit of risk. Cleanaway Waste Management is currently generating about -0.19 per unit of risk. If you would invest  201.00  in REGAL ASIAN INVESTMENTS on December 3, 2024 and sell it today you would earn a total of  13.00  from holding REGAL ASIAN INVESTMENTS or generate 6.47% return on investment over 90 days.

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

REGAL ASIAN INVESTMENTS  vs.  Cleanaway Waste Management

REGAL ASIAN INVESTMENTS

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in REGAL ASIAN INVESTMENTS are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, REGAL ASIAN may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Cleanaway Waste Mana

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cleanaway Waste Management 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 REGAL ASIAN and Cleanaway Waste

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

The idea behind REGAL ASIAN INVESTMENTS and Cleanaway Waste 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.