Correlation Between REGAL ASIAN and Inventis

Can any of the company-specific risk be diversified away by investing in both REGAL ASIAN and Inventis 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 Inventis 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 Inventis, you can compare the effects of market volatilities on REGAL ASIAN and Inventis 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 Inventis. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL ASIAN and Inventis.

Diversification Opportunities for REGAL ASIAN and Inventis

0.02

Correlation Coefficient

REGAL ASIAN  Inventis

Significant diversification

The 3 months correlation between REGAL and Inventis is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and Inventis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inventis 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 Inventis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inventis has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and Inventis go up and down completely randomly.

Pair Corralation between REGAL ASIAN and Inventis

Assuming the 90 days trading horizon REGAL ASIAN INVESTMENTS is expected to under-perform the Inventis. But the stock apears to be less risky and, when comparing its historical volatility, REGAL ASIAN INVESTMENTS is 2.12 times less risky than Inventis. The stock trades about -0.09 of its potential returns per unit of risk. The Inventis is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  2.50  in Inventis on December 30, 2024 and sell it today you would lose (0.10) from holding Inventis or give up 4.0% of portfolio value over 90 days.

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

REGAL ASIAN INVESTMENTS  vs.  Inventis

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.

Inventis

Risk-Adjusted Performance

Very Weak

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

Pair Trading with REGAL ASIAN and Inventis

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

The idea behind REGAL ASIAN INVESTMENTS and Inventis 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.