Correlation Between Regenerx Biopharm and Biostage
Can any of the company-specific risk be diversified away by investing in both Regenerx Biopharm and Biostage 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 Biostage 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 Biostage, you can compare the effects of market volatilities on Regenerx Biopharm and Biostage 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 Biostage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regenerx Biopharm and Biostage.
Diversification Opportunities for Regenerx Biopharm and Biostage
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Regenerx and Biostage is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Regenerx Biopharm In and Biostage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biostage 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 Biostage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biostage has no effect on the direction of Regenerx Biopharm i.e., Regenerx Biopharm and Biostage go up and down completely randomly.
Pair Corralation between Regenerx Biopharm and Biostage
Given the investment horizon of 90 days Regenerx Biopharm In is expected to generate 7.11 times more return on investment than Biostage. However, Regenerx Biopharm is 7.11 times more volatile than Biostage. It trades about 0.07 of its potential returns per unit of risk. Biostage is currently generating about -0.06 per unit of risk. If you would invest 5.00 in Regenerx Biopharm In on September 2, 2024 and sell it today you would lose (1.70) from holding Regenerx Biopharm In or give up 34.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.67% |
| Values | Daily Returns |
Regenerx Biopharm In vs. Biostage
Performance |
| Timeline |
| Regenerx Biopharm |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Biostage |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Regenerx Biopharm and Biostage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regenerx Biopharm and Biostage
The main advantage of trading using opposite Regenerx Biopharm and Biostage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regenerx Biopharm position performs unexpectedly, Biostage 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 Biostage will offset losses from the drop in Biostage's 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 |
| Biostage vs. Biotron Limited | Biostage vs. biOasis Technologies | Biostage vs. Covalon Technologies | Biostage vs. Mosaic Immunoengineering |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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