Correlation Between Passage Bio and Regenxbio
Can any of the company-specific risk be diversified away by investing in both Passage 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 Passage Bio and Regenxbio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Passage Bio and Regenxbio, you can compare the effects of market volatilities on Passage 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 Passage Bio with a short position of Regenxbio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Passage Bio and Regenxbio.
Diversification Opportunities for Passage Bio and Regenxbio
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Passage and Regenxbio is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Passage Bio and Regenxbio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regenxbio and Passage 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 Passage 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 Passage Bio i.e., Passage Bio and Regenxbio go up and down completely randomly.
Pair Corralation between Passage Bio and Regenxbio
Given the investment horizon of 90 days Passage Bio is expected to under-perform the Regenxbio. But the stock apears to be less risky and, when comparing its historical volatility, Passage Bio is 1.13 times less risky than Regenxbio. The stock trades about -0.5 of its potential returns per unit of risk. The Regenxbio is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 786.00 in Regenxbio on November 2, 2024 and sell it today you would earn a total of 4.00 from holding Regenxbio or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Passage Bio vs. Regenxbio
Performance |
| Timeline |
| Passage Bio |
| Regenxbio |
Passage Bio and Regenxbio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Passage Bio and Regenxbio
The main advantage of trading using opposite Passage Bio and Regenxbio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Passage 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.| Passage Bio vs. Black Diamond Therapeutics | Passage Bio vs. Revolution Medicines | Passage Bio vs. Stoke Therapeutics | Passage Bio vs. Cabaletta Bio |
| 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 Stocks Directory module to find actively traded stocks across global markets.
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