Correlation Between Regal Funds and Bio Gene
Can any of the company-specific risk be diversified away by investing in both Regal Funds and Bio Gene 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 Funds and Bio Gene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regal Funds Management and Bio Gene Technology, you can compare the effects of market volatilities on Regal Funds and Bio Gene 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 Funds with a short position of Bio Gene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regal Funds and Bio Gene.
Diversification Opportunities for Regal Funds and Bio Gene
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Regal and Bio is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Regal Funds Management and Bio Gene Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bio Gene Technology and Regal Funds 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 Funds Management are associated (or correlated) with Bio Gene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bio Gene Technology has no effect on the direction of Regal Funds i.e., Regal Funds and Bio Gene go up and down completely randomly.
Pair Corralation between Regal Funds and Bio Gene
Assuming the 90 days trading horizon Regal Funds Management is expected to generate 0.34 times more return on investment than Bio Gene. However, Regal Funds Management is 2.98 times less risky than Bio Gene. It trades about 0.16 of its potential returns per unit of risk. Bio Gene Technology is currently generating about -0.21 per unit of risk. If you would invest 376.00 in Regal Funds Management on September 10, 2024 and sell it today you would earn a total of 24.00 from holding Regal Funds Management or generate 6.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Regal Funds Management vs. Bio Gene Technology
Performance |
Timeline |
Regal Funds Management |
Bio Gene Technology |
Regal Funds and Bio Gene Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Regal Funds and Bio Gene
The main advantage of trading using opposite Regal Funds and Bio Gene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regal Funds position performs unexpectedly, Bio Gene 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 Bio Gene will offset losses from the drop in Bio Gene's long position.Regal Funds vs. EROAD | Regal Funds vs. Seven West Media | Regal Funds vs. Bluescope Steel | Regal Funds vs. AiMedia Technologies |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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