Correlation Between Regal Funds and SEVEN GROUP

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

Diversification Opportunities for Regal Funds and SEVEN GROUP

0.68

Correlation Coefficient

Regal Funds  SEVEN GROUP

Poor diversification

The 3 months correlation between Regal and SEVEN is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Regal Funds Management and SEVEN GROUP HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEVEN GROUP HOLDINGS 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 SEVEN GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEVEN GROUP HOLDINGS has no effect on the direction of Regal Funds i.e., Regal Funds and SEVEN GROUP go up and down completely randomly.

Pair Corralation between Regal Funds and SEVEN GROUP

Assuming the 90 days trading horizon Regal Funds Management is expected to under-perform the SEVEN GROUP. In addition to that, Regal Funds is 1.78 times more volatile than SEVEN GROUP HOLDINGS. It trades about -0.42 of its total potential returns per unit of risk. SEVEN GROUP HOLDINGS is currently generating about -0.28 per unit of volatility. If you would invest  4,813  in SEVEN GROUP HOLDINGS on September 23, 2024 and sell it today you would lose (322.00) from holding SEVEN GROUP HOLDINGS or give up 6.69% of portfolio value over 90 days.

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

Regal Funds Management  vs.  SEVEN GROUP HOLDINGS

Regal Funds Management

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Regal Funds Management are ranked lower than 1 (%) 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.

SEVEN GROUP HOLDINGS

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SEVEN GROUP HOLDINGS are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, SEVEN GROUP may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Regal Funds and SEVEN GROUP

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

The idea behind Regal Funds Management and SEVEN GROUP HOLDINGS 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.