Correlation Between Regal Funds and Environmental

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

Diversification Opportunities for Regal Funds and Environmental

-0.44

Correlation Coefficient

Regal Funds  Environmental

Very good diversification

The 3 months correlation between Regal and Environmental is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Regal Funds Management and The Environmental Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Environmental 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 Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Environmental has no effect on the direction of Regal Funds i.e., Regal Funds and Environmental go up and down completely randomly.

Pair Corralation between Regal Funds and Environmental

Assuming the 90 days trading horizon Regal Funds is expected to generate 1.69 times less return on investment than Environmental. But when comparing it to its historical volatility, Regal Funds Management is 1.36 times less risky than Environmental. It trades about 0.02 of its potential returns per unit of risk. The Environmental Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  24.00  in The Environmental Group on October 25, 2024 and sell it today you would earn a total of  3.00  from holding The Environmental Group or generate 12.5% return on investment over 90 days.

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

Regal Funds Management  vs.  The Environmental Group

Regal Funds Management

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Regal Funds Management are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable essential indicators, Regal Funds is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

The Environmental

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days The Environmental Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Regal Funds and Environmental

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

The idea behind Regal Funds Management and The Environmental Group 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.