Correlation Between Regional Management and TWFG,

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

By analyzing existing cross correlation between Regional Management Corp and TWFG, Class A, you can compare the effects of market volatilities on Regional Management and TWFG, 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 Regional Management with a short position of TWFG,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regional Management and TWFG,.

Diversification Opportunities for Regional Management and TWFG,

-0.22

Correlation Coefficient

Regional Management  TWFG,

Very good diversification

The 3 months correlation between Regional and TWFG, is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Regional Management Corp and TWFG, Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TWFG, Class A and Regional Management 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 Regional Management Corp are associated (or correlated) with TWFG,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TWFG, Class A has no effect on the direction of Regional Management i.e., Regional Management and TWFG, go up and down completely randomly.

Pair Corralation between Regional Management and TWFG,

Allowing for the 90-day total investment horizon Regional Management is expected to generate 1.43 times less return on investment than TWFG,. In addition to that, Regional Management is 1.11 times more volatile than TWFG, Class A. It trades about 0.06 of its total potential returns per unit of risk. TWFG, Class A is currently generating about 0.1 per unit of volatility. If you would invest  2,201  in TWFG, Class A on September 30, 2024 and sell it today you would earn a total of  691.00  from holding TWFG, Class A or generate 31.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	91.27%
Values	Daily Returns

Regional Management Corp  vs.  TWFG, Class A

Regional Management Corp

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Regional Management Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy primary indicators, Regional Management is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

TWFG, Class A

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in TWFG, Class A are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent technical and fundamental indicators, TWFG, may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Regional Management and TWFG,

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

The idea behind Regional Management Corp and TWFG, Class A 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.