Correlation Between CYBERDYNE and Regen BioPharma
Can any of the company-specific risk be diversified away by investing in both CYBERDYNE and Regen BioPharma 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 CYBERDYNE and Regen BioPharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CYBERDYNE and Regen BioPharma, you can compare the effects of market volatilities on CYBERDYNE and Regen BioPharma 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 CYBERDYNE with a short position of Regen BioPharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of CYBERDYNE and Regen BioPharma.
Diversification Opportunities for CYBERDYNE and Regen BioPharma
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CYBERDYNE and Regen is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding CYBERDYNE and Regen BioPharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regen BioPharma and CYBERDYNE 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 CYBERDYNE are associated (or correlated) with Regen BioPharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regen BioPharma has no effect on the direction of CYBERDYNE i.e., CYBERDYNE and Regen BioPharma go up and down completely randomly.
Pair Corralation between CYBERDYNE and Regen BioPharma
Assuming the 90 days horizon CYBERDYNE is expected to generate 0.41 times more return on investment than Regen BioPharma. However, CYBERDYNE is 2.41 times less risky than Regen BioPharma. It trades about 0.12 of its potential returns per unit of risk. Regen BioPharma is currently generating about 0.01 per unit of risk. If you would invest 103.00 in CYBERDYNE on December 14, 2024 and sell it today you would earn a total of 27.00 from holding CYBERDYNE or generate 26.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
CYBERDYNE vs. Regen BioPharma
Performance |
| Timeline |
| CYBERDYNE |
| Regen BioPharma |
CYBERDYNE and Regen BioPharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CYBERDYNE and Regen BioPharma
The main advantage of trading using opposite CYBERDYNE and Regen BioPharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CYBERDYNE position performs unexpectedly, Regen BioPharma 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 Regen BioPharma will offset losses from the drop in Regen BioPharma's long position.The idea behind CYBERDYNE and Regen BioPharma 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.| Regen BioPharma vs. Oncology Pharma | ||
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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