Correlation Between Regenerx Biopharm and Bionik Laboratories
Can any of the company-specific risk be diversified away by investing in both Regenerx Biopharm and Bionik Laboratories 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 Regenerx Biopharm and Bionik Laboratories into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regenerx Biopharm In and Bionik Laboratories Corp, you can compare the effects of market volatilities on Regenerx Biopharm and Bionik Laboratories 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 Regenerx Biopharm with a short position of Bionik Laboratories. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regenerx Biopharm and Bionik Laboratories.
Diversification Opportunities for Regenerx Biopharm and Bionik Laboratories
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Regenerx and Bionik is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Regenerx Biopharm In and Bionik Laboratories Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bionik Laboratories Corp and Regenerx Biopharm 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 Regenerx Biopharm In are associated (or correlated) with Bionik Laboratories. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bionik Laboratories Corp has no effect on the direction of Regenerx Biopharm i.e., Regenerx Biopharm and Bionik Laboratories go up and down completely randomly.
Pair Corralation between Regenerx Biopharm and Bionik Laboratories
Given the investment horizon of 90 days Regenerx Biopharm is expected to generate 1.51 times less return on investment than Bionik Laboratories. But when comparing it to its historical volatility, Regenerx Biopharm In is 2.03 times less risky than Bionik Laboratories. It trades about 0.07 of its potential returns per unit of risk. Bionik Laboratories Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 50.00 in Bionik Laboratories Corp on September 2, 2024 and sell it today you would lose (50.00) from holding Bionik Laboratories Corp or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 8.06% |
| Values | Daily Returns |
Regenerx Biopharm In vs. Bionik Laboratories Corp
Performance |
| Timeline |
| Regenerx Biopharm |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bionik Laboratories Corp |
Regenerx Biopharm and Bionik Laboratories Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regenerx Biopharm and Bionik Laboratories
The main advantage of trading using opposite Regenerx Biopharm and Bionik Laboratories positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regenerx Biopharm position performs unexpectedly, Bionik Laboratories 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 Bionik Laboratories will offset losses from the drop in Bionik Laboratories' long position.| Regenerx Biopharm vs. Fortress Biotech Pref | Regenerx Biopharm vs. Awakn Life Sciences | Regenerx Biopharm vs. Regen BioPharma | Regenerx Biopharm vs. Therapeutic Solutions International |
| Bionik Laboratories vs. Tenaris SA ADR | Bionik Laboratories vs. Tianjin Capital Environmental | Bionik Laboratories vs. AKITA Drilling | Bionik Laboratories vs. Titan International |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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