Correlation Between Knife River and Regenx Tech
Can any of the company-specific risk be diversified away by investing in both Knife River 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 Knife River and Regenx Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knife River and Regenx Tech Corp, you can compare the effects of market volatilities on Knife River 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 Knife River with a short position of Regenx Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knife River and Regenx Tech.
Diversification Opportunities for Knife River and Regenx Tech
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Knife and Regenx is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Knife River 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 Knife River 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 Knife River 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 Knife River i.e., Knife River and Regenx Tech go up and down completely randomly.
Pair Corralation between Knife River and Regenx Tech
Considering the 90-day investment horizon Knife River is expected to generate 0.21 times more return on investment than Regenx Tech. However, Knife River is 4.87 times less risky than Regenx Tech. It trades about 0.13 of its potential returns per unit of risk. Regenx Tech Corp is currently generating about 0.02 per unit of risk. If you would invest 3,551 in Knife River on August 26, 2024 and sell it today you would earn a total of 6,714 from holding Knife River or generate 189.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 75.86% |
| Values | Daily Returns |
Knife River vs. Regenx Tech Corp
Performance |
| Timeline |
| Knife River |
| Regenx Tech Corp |
Knife River and Regenx Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knife River and Regenx Tech
The main advantage of trading using opposite Knife River and Regenx Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knife River 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.| Knife River vs. Chester Mining | Knife River vs. Aldel Financial II | Knife River vs. NetSol Technologies | Knife River vs. ServiceNow |
| Regenx Tech vs. Morningstar Unconstrained Allocation | Regenx Tech vs. High Yield Municipal Fund | Regenx Tech vs. Knife River | Regenx Tech vs. Klckner Co SE |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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