Correlation Between Max Resource and Regenx Tech
Can any of the company-specific risk be diversified away by investing in both Max Resource 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 Max Resource and Regenx Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Max Resource Corp and Regenx Tech Corp, you can compare the effects of market volatilities on Max Resource 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 Max Resource with a short position of Regenx Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Max Resource and Regenx Tech.
Diversification Opportunities for Max Resource and Regenx Tech
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Max and Regenx is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Max Resource 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 Max Resource 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 Max Resource 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 Max Resource i.e., Max Resource and Regenx Tech go up and down completely randomly.
Pair Corralation between Max Resource and Regenx Tech
Assuming the 90 days horizon Max Resource Corp is expected to generate 0.81 times more return on investment than Regenx Tech. However, Max Resource Corp is 1.24 times less risky than Regenx Tech. It trades about 0.03 of its potential returns per unit of risk. Regenx Tech Corp is currently generating about 0.01 per unit of risk. If you would invest 8.00 in Max Resource Corp on September 1, 2024 and sell it today you would lose (4.00) from holding Max Resource Corp or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Max Resource Corp vs. Regenx Tech Corp
Performance |
| Timeline |
| Max Resource Corp |
| Regenx Tech Corp |
Max Resource and Regenx Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Max Resource and Regenx Tech
The main advantage of trading using opposite Max Resource and Regenx Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Max Resource 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.| Max Resource vs. Defiance Silver Corp | Max Resource vs. HUMANA INC | Max Resource vs. SCOR PK | Max Resource 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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