Correlation Between REGAL ASIAN and BAKED GAMES

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

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

Diversification Opportunities for REGAL ASIAN and BAKED GAMES

-0.65

Correlation Coefficient

REGAL ASIAN  BAKED GAMES

Excellent diversification

The 3 months correlation between REGAL and BAKED is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and BAKED GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAKED GAMES SA and REGAL ASIAN 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 ASIAN INVESTMENTS are associated (or correlated) with BAKED GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAKED GAMES SA has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and BAKED GAMES go up and down completely randomly.

Pair Corralation between REGAL ASIAN and BAKED GAMES

Assuming the 90 days trading horizon REGAL ASIAN INVESTMENTS is expected to generate 0.64 times more return on investment than BAKED GAMES. However, REGAL ASIAN INVESTMENTS is 1.57 times less risky than BAKED GAMES. It trades about 0.21 of its potential returns per unit of risk. BAKED GAMES SA is currently generating about -0.05 per unit of risk. If you would invest  89.00  in REGAL ASIAN INVESTMENTS on April 24, 2025 and sell it today you would earn a total of  21.00  from holding REGAL ASIAN INVESTMENTS or generate 23.6% return on investment over 90 days.

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

REGAL ASIAN INVESTMENTS  vs.  BAKED GAMES SA

REGAL ASIAN INVESTMENTS

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in REGAL ASIAN INVESTMENTS are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, REGAL ASIAN reported solid returns over the last few months and may actually be approaching a breakup point.

BAKED GAMES SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days BAKED GAMES SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with REGAL ASIAN and BAKED GAMES

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

The idea behind REGAL ASIAN INVESTMENTS and BAKED GAMES SA 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.