Correlation Between Regenx Tech and GoGold Resources
Can any of the company-specific risk be diversified away by investing in both Regenx Tech and GoGold Resources 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 Regenx Tech and GoGold Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regenx Tech Corp and GoGold Resources, you can compare the effects of market volatilities on Regenx Tech and GoGold Resources 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 Regenx Tech with a short position of GoGold Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regenx Tech and GoGold Resources.
Diversification Opportunities for Regenx Tech and GoGold Resources
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Regenx and GoGold is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Regenx Tech Corp and GoGold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoGold Resources and Regenx Tech 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 Regenx Tech Corp are associated (or correlated) with GoGold Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoGold Resources has no effect on the direction of Regenx Tech i.e., Regenx Tech and GoGold Resources go up and down completely randomly.
Pair Corralation between Regenx Tech and GoGold Resources
Assuming the 90 days horizon Regenx Tech Corp is expected to under-perform the GoGold Resources. In addition to that, Regenx Tech is 3.04 times more volatile than GoGold Resources. It trades about -0.01 of its total potential returns per unit of risk. GoGold Resources is currently generating about -0.01 per unit of volatility. If you would invest 143.00 in GoGold Resources on August 30, 2024 and sell it today you would lose (52.00) from holding GoGold Resources or give up 36.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regenx Tech Corp vs. GoGold Resources
Performance |
| Timeline |
| Regenx Tech Corp |
| GoGold Resources |
Regenx Tech and GoGold Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regenx Tech and GoGold Resources
The main advantage of trading using opposite Regenx Tech and GoGold Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regenx Tech position performs unexpectedly, GoGold Resources 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 GoGold Resources will offset losses from the drop in GoGold Resources' long position.| Regenx Tech vs. GoGold Resources | Regenx Tech vs. P2 Gold | Regenx Tech vs. Max Resource Corp | Regenx Tech vs. Pacific Ridge Exploration |
| GoGold Resources vs. Silver Hammer Mining | GoGold Resources vs. Reyna Silver Corp | GoGold Resources vs. Guanajuato Silver | GoGold Resources vs. Silver One Resources |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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