Correlation Between REGAL ASIAN and MICRONIC MYDATA

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

Diversification Opportunities for REGAL ASIAN and MICRONIC MYDATA

0.48

Correlation Coefficient

REGAL ASIAN  MICRONIC MYDATA

Very weak diversification

The 3 months correlation between REGAL and MICRONIC is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and MICRONIC MYDATA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MICRONIC MYDATA 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 MICRONIC MYDATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MICRONIC MYDATA has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and MICRONIC MYDATA go up and down completely randomly.

Pair Corralation between REGAL ASIAN and MICRONIC MYDATA

Assuming the 90 days trading horizon REGAL ASIAN INVESTMENTS is expected to generate 0.8 times more return on investment than MICRONIC MYDATA. However, REGAL ASIAN INVESTMENTS is 1.25 times less risky than MICRONIC MYDATA. It trades about 0.19 of its potential returns per unit of risk. MICRONIC MYDATA is currently generating about 0.1 per unit of risk. If you would invest  90.00  in REGAL ASIAN INVESTMENTS on April 23, 2025 and sell it today you would earn a total of  19.00  from holding REGAL ASIAN INVESTMENTS or generate 21.11% return on investment over 90 days.

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

REGAL ASIAN INVESTMENTS  vs.  MICRONIC MYDATA

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 14 (%) 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.

MICRONIC MYDATA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MICRONIC MYDATA are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, MICRONIC MYDATA exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with REGAL ASIAN and MICRONIC MYDATA

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

The idea behind REGAL ASIAN INVESTMENTS and MICRONIC MYDATA 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.