Correlation Between Payden Regal and Payden E
Can any of the company-specific risk be diversified away by investing in both Payden Regal and Payden E 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 Payden Regal and Payden E into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Payden Regal and Payden E Bond, you can compare the effects of market volatilities on Payden Regal and Payden E 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 Payden Regal with a short position of Payden E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Payden Regal and Payden E.
Diversification Opportunities for Payden Regal and Payden E
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Payden and Payden is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding The Payden Regal and Payden E Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden E Bond and Payden Regal 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 The Payden Regal are associated (or correlated) with Payden E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden E Bond has no effect on the direction of Payden Regal i.e., Payden Regal and Payden E go up and down completely randomly.
Pair Corralation between Payden Regal and Payden E
Assuming the 90 days horizon The Payden Regal is expected to generate 0.79 times more return on investment than Payden E. However, The Payden Regal is 1.27 times less risky than Payden E. It trades about 0.12 of its potential returns per unit of risk. Payden E Bond is currently generating about 0.03 per unit of risk. If you would invest 1,262 in The Payden Regal on October 6, 2025 and sell it today you would earn a total of 14.00 from holding The Payden Regal or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Payden Regal vs. Payden E Bond
Performance |
| Timeline |
| Payden Regal |
| Payden E Bond |
Payden Regal and Payden E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Payden Regal and Payden E
The main advantage of trading using opposite Payden Regal and Payden E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Payden Regal position performs unexpectedly, Payden E 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 Payden E will offset losses from the drop in Payden E's long position.| Payden Regal vs. Prudential Emerging Markets | Payden Regal vs. Western Assets Emerging | Payden Regal vs. Sa Emerging Markets | Payden Regal vs. Seafarer Overseas Growth |
| Payden E vs. Mfs Technology Fund | Payden E vs. Towpath Technology | Payden E vs. Vanguard Information Technology | Payden E vs. Janus Global Technology |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |