Correlation Between BlueLinx Holdings and Regulus Resources
Can any of the company-specific risk be diversified away by investing in both BlueLinx Holdings and Regulus Resources 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 BlueLinx Holdings and Regulus Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlueLinx Holdings and Regulus Resources, you can compare the effects of market volatilities on BlueLinx Holdings and Regulus Resources 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 BlueLinx Holdings with a short position of Regulus Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlueLinx Holdings and Regulus Resources.
Diversification Opportunities for BlueLinx Holdings and Regulus Resources
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between BlueLinx and Regulus is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding BlueLinx Holdings and Regulus Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regulus Resources and BlueLinx Holdings 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 BlueLinx Holdings are associated (or correlated) with Regulus Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regulus Resources has no effect on the direction of BlueLinx Holdings i.e., BlueLinx Holdings and Regulus Resources go up and down completely randomly.
Pair Corralation between BlueLinx Holdings and Regulus Resources
Considering the 90-day investment horizon BlueLinx Holdings is expected to generate 1.78 times less return on investment than Regulus Resources. But when comparing it to its historical volatility, BlueLinx Holdings is 1.05 times less risky than Regulus Resources. It trades about 0.15 of its potential returns per unit of risk. Regulus Resources is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 133.00 in Regulus Resources on November 3, 2024 and sell it today you would earn a total of 20.00 from holding Regulus Resources or generate 15.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlueLinx Holdings vs. Regulus Resources
Performance |
| Timeline |
| BlueLinx Holdings |
| Regulus Resources |
BlueLinx Holdings and Regulus Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlueLinx Holdings and Regulus Resources
The main advantage of trading using opposite BlueLinx Holdings and Regulus Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlueLinx Holdings position performs unexpectedly, Regulus Resources 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 Regulus Resources will offset losses from the drop in Regulus Resources' long position.| BlueLinx Holdings vs. DXP Enterprises | BlueLinx Holdings vs. Distribution Solutions Group | BlueLinx Holdings vs. Core Main | BlueLinx Holdings vs. WESCO International |
| Regulus Resources vs. Peak Resources Limited | Regulus Resources vs. Glen Eagle Resources | Regulus Resources vs. Metals Creek Resources | Regulus Resources vs. PepinNini Minerals Limited |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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