Correlation Between REGAL ASIAN and ITOCHU

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

Diversification Opportunities for REGAL ASIAN and ITOCHU

0.34

Correlation Coefficient

REGAL ASIAN  ITOCHU

Weak diversification

The 3 months correlation between REGAL and ITOCHU is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and ITOCHU in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITOCHU 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 ITOCHU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITOCHU has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and ITOCHU go up and down completely randomly.

Pair Corralation between REGAL ASIAN and ITOCHU

Assuming the 90 days trading horizon REGAL ASIAN is expected to generate 2.76 times less return on investment than ITOCHU. In addition to that, REGAL ASIAN is 1.62 times more volatile than ITOCHU. It trades about 0.01 of its total potential returns per unit of risk. ITOCHU is currently generating about 0.06 per unit of volatility. If you would invest  4,225  in ITOCHU on March 29, 2025 and sell it today you would earn a total of  268.00  from holding ITOCHU or generate 6.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

REGAL ASIAN INVESTMENTS  vs.  ITOCHU

REGAL ASIAN INVESTMENTS

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in REGAL ASIAN INVESTMENTS are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, REGAL ASIAN is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

ITOCHU

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ITOCHU are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, ITOCHU may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Pair Trading with REGAL ASIAN and ITOCHU

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

The idea behind REGAL ASIAN INVESTMENTS and ITOCHU 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..