Correlation Between REGAL ASIAN and Navigator Global

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

Diversification Opportunities for REGAL ASIAN and Navigator Global

0.39

Correlation Coefficient

REGAL ASIAN  Navigator Global

Weak diversification

The 3 months correlation between REGAL and Navigator is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and Navigator Global Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Navigator Global Inv 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 Navigator Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Navigator Global Inv has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and Navigator Global go up and down completely randomly.

Pair Corralation between REGAL ASIAN and Navigator Global

Assuming the 90 days trading horizon REGAL ASIAN is expected to generate 2.99 times less return on investment than Navigator Global. But when comparing it to its historical volatility, REGAL ASIAN INVESTMENTS is 1.98 times less risky than Navigator Global. It trades about 0.06 of its potential returns per unit of risk. Navigator Global Investments is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  163.00  in Navigator Global Investments on December 23, 2024 and sell it today you would earn a total of  23.00  from holding Navigator Global Investments or generate 14.11% return on investment over 90 days.

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

REGAL ASIAN INVESTMENTS  vs.  Navigator Global Investments

REGAL ASIAN INVESTMENTS

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in REGAL ASIAN INVESTMENTS are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, REGAL ASIAN is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Navigator Global Inv

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Navigator Global Investments are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward indicators, Navigator Global unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with REGAL ASIAN and Navigator Global

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

The idea behind REGAL ASIAN INVESTMENTS and Navigator Global 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.

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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.