Correlation Between Kodiak Copper and Regenx Tech
Can any of the company-specific risk be diversified away by investing in both Kodiak Copper and Regenx Tech 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 Kodiak Copper and Regenx Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kodiak Copper Corp and Regenx Tech Corp, you can compare the effects of market volatilities on Kodiak Copper and Regenx Tech 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 Kodiak Copper with a short position of Regenx Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kodiak Copper and Regenx Tech.
Diversification Opportunities for Kodiak Copper and Regenx Tech
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kodiak and Regenx is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Kodiak Copper Corp and Regenx Tech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regenx Tech Corp and Kodiak Copper 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 Kodiak Copper Corp are associated (or correlated) with Regenx Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regenx Tech Corp has no effect on the direction of Kodiak Copper i.e., Kodiak Copper and Regenx Tech go up and down completely randomly.
Pair Corralation between Kodiak Copper and Regenx Tech
Assuming the 90 days horizon Kodiak Copper Corp is expected to under-perform the Regenx Tech. But the otc stock apears to be less risky and, when comparing its historical volatility, Kodiak Copper Corp is 3.73 times less risky than Regenx Tech. The otc stock trades about -0.04 of its potential returns per unit of risk. The Regenx Tech Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1.50 in Regenx Tech Corp on September 1, 2024 and sell it today you would lose (0.45) from holding Regenx Tech Corp or give up 30.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kodiak Copper Corp vs. Regenx Tech Corp
Performance |
| Timeline |
| Kodiak Copper Corp |
| Regenx Tech Corp |
Kodiak Copper and Regenx Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kodiak Copper and Regenx Tech
The main advantage of trading using opposite Kodiak Copper and Regenx Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kodiak Copper position performs unexpectedly, Regenx Tech 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 Regenx Tech will offset losses from the drop in Regenx Tech's long position.| Kodiak Copper vs. Defiance Silver Corp | Kodiak Copper vs. HUMANA INC | Kodiak Copper vs. SCOR PK | Kodiak Copper vs. Aquagold International |
| Regenx Tech vs. GoGold Resources | Regenx Tech vs. P2 Gold | Regenx Tech vs. Max Resource Corp | Regenx Tech vs. Pacific Ridge Exploration |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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