Correlation Between Mustang Bio and Regenxbio
Can any of the company-specific risk be diversified away by investing in both Mustang Bio and Regenxbio 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 Mustang Bio and Regenxbio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mustang Bio and Regenxbio, you can compare the effects of market volatilities on Mustang Bio and Regenxbio 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 Mustang Bio with a short position of Regenxbio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mustang Bio and Regenxbio.
Diversification Opportunities for Mustang Bio and Regenxbio
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mustang and Regenxbio is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Mustang Bio and Regenxbio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regenxbio and Mustang Bio 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 Mustang Bio are associated (or correlated) with Regenxbio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regenxbio has no effect on the direction of Mustang Bio i.e., Mustang Bio and Regenxbio go up and down completely randomly.
Pair Corralation between Mustang Bio and Regenxbio
Given the investment horizon of 90 days Mustang Bio is expected to generate 5.71 times more return on investment than Regenxbio. However, Mustang Bio is 5.71 times more volatile than Regenxbio. It trades about 0.01 of its potential returns per unit of risk. Regenxbio is currently generating about -0.02 per unit of risk. If you would invest 630.00 in Mustang Bio on September 2, 2024 and sell it today you would lose (610.00) from holding Mustang Bio or give up 96.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mustang Bio vs. Regenxbio
Performance |
| Timeline |
| Mustang Bio |
| Regenxbio |
Mustang Bio and Regenxbio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mustang Bio and Regenxbio
The main advantage of trading using opposite Mustang Bio and Regenxbio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mustang Bio position performs unexpectedly, Regenxbio 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 Regenxbio will offset losses from the drop in Regenxbio's long position.| Mustang Bio vs. Tff Pharmaceuticals | Mustang Bio vs. Eliem Therapeutics | Mustang Bio vs. Inhibrx | Mustang Bio vs. Enliven Therapeutics |
| Regenxbio vs. Day One Biopharmaceuticals | Regenxbio vs. Replimune Group | Regenxbio vs. Mirum Pharmaceuticals | Regenxbio vs. Rocket Pharmaceuticals |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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