Correlation Between DATAWALK B and REGAL ASIAN

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

By analyzing existing cross correlation between DATAWALK B H ZY and REGAL ASIAN INVESTMENTS, you can compare the effects of market volatilities on DATAWALK B and REGAL ASIAN 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 DATAWALK B with a short position of REGAL ASIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of DATAWALK B and REGAL ASIAN.

Diversification Opportunities for DATAWALK B and REGAL ASIAN

0.8

Correlation Coefficient

DATAWALK B  REGAL ASIAN

Very poor diversification

The 3 months correlation between DATAWALK and REGAL is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding DATAWALK B H ZY and REGAL ASIAN INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REGAL ASIAN INVESTMENTS and DATAWALK B 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 DATAWALK B H ZY are associated (or correlated) with REGAL ASIAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REGAL ASIAN INVESTMENTS has no effect on the direction of DATAWALK B i.e., DATAWALK B and REGAL ASIAN go up and down completely randomly.

Pair Corralation between DATAWALK B and REGAL ASIAN

Assuming the 90 days horizon DATAWALK B is expected to generate 4.92 times less return on investment than REGAL ASIAN. In addition to that, DATAWALK B is 2.89 times more volatile than REGAL ASIAN INVESTMENTS. It trades about 0.01 of its total potential returns per unit of risk. REGAL ASIAN INVESTMENTS is currently generating about 0.17 per unit of volatility. If you would invest  103.00  in REGAL ASIAN INVESTMENTS on April 21, 2025 and sell it today you would earn a total of  6.00  from holding REGAL ASIAN INVESTMENTS or generate 5.83% return on investment over 90 days.

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

DATAWALK B H ZY  vs.  REGAL ASIAN INVESTMENTS

DATAWALK B H

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in DATAWALK B H ZY are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, DATAWALK B reported solid returns over the last few months and may actually be approaching a breakup point.

REGAL ASIAN INVESTMENTS

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in REGAL ASIAN INVESTMENTS are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, REGAL ASIAN reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DATAWALK B and REGAL ASIAN

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

The idea behind DATAWALK B H ZY and REGAL ASIAN 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.