Correlation Between Geron and Regen BioPharma
Can any of the company-specific risk be diversified away by investing in both Geron 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 Geron and Regen BioPharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Geron and Regen BioPharma, you can compare the effects of market volatilities on Geron 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 Geron with a short position of Regen BioPharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geron and Regen BioPharma.
Diversification Opportunities for Geron and Regen BioPharma
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Geron and Regen is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Geron and Regen BioPharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regen BioPharma and Geron 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 Geron 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 Geron i.e., Geron and Regen BioPharma go up and down completely randomly.
Pair Corralation between Geron and Regen BioPharma
Given the investment horizon of 90 days Geron is expected to generate 48.49 times less return on investment than Regen BioPharma. But when comparing it to its historical volatility, Geron is 10.94 times less risky than Regen BioPharma. It trades about 0.04 of its potential returns per unit of risk. Regen BioPharma is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,445 in Regen BioPharma on August 30, 2024 and sell it today you would lose (1,435) from holding Regen BioPharma or give up 99.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Geron vs. Regen BioPharma
Performance |
| Timeline |
| Geron |
| Regen BioPharma |
Geron and Regen BioPharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geron and Regen BioPharma
The main advantage of trading using opposite Geron and Regen BioPharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geron 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.| Geron vs. Viking Therapeutics | Geron vs. TG Therapeutics | Geron vs. X4 Pharmaceuticals | Geron vs. PDS Biotechnology Corp |
| Regen BioPharma vs. Advanced Proteome Therapeutics | Regen BioPharma vs. ChitogenX | Regen BioPharma vs. Northwest Biotherapeutics | Regen BioPharma vs. Geron |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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