Correlation Between SIGA Technologies and Regulus Therapeutics
Can any of the company-specific risk be diversified away by investing in both SIGA Technologies and Regulus Therapeutics 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 SIGA Technologies and Regulus Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIGA Technologies and Regulus Therapeutics, you can compare the effects of market volatilities on SIGA Technologies and Regulus Therapeutics 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 SIGA Technologies with a short position of Regulus Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIGA Technologies and Regulus Therapeutics.
Diversification Opportunities for SIGA Technologies and Regulus Therapeutics
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SIGA and Regulus is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding SIGA Technologies and Regulus Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regulus Therapeutics and SIGA Technologies 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 SIGA Technologies are associated (or correlated) with Regulus Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regulus Therapeutics has no effect on the direction of SIGA Technologies i.e., SIGA Technologies and Regulus Therapeutics go up and down completely randomly.
Pair Corralation between SIGA Technologies and Regulus Therapeutics
Given the investment horizon of 90 days SIGA Technologies is expected to generate 1.83 times less return on investment than Regulus Therapeutics. But when comparing it to its historical volatility, SIGA Technologies is 1.46 times less risky than Regulus Therapeutics. It trades about 0.02 of its potential returns per unit of risk. Regulus Therapeutics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 158.00 in Regulus Therapeutics on September 3, 2024 and sell it today you would earn a total of 5.00 from holding Regulus Therapeutics or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIGA Technologies vs. Regulus Therapeutics
Performance |
| Timeline |
| SIGA Technologies |
| Regulus Therapeutics |
SIGA Technologies and Regulus Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIGA Technologies and Regulus Therapeutics
The main advantage of trading using opposite SIGA Technologies and Regulus Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIGA Technologies position performs unexpectedly, Regulus Therapeutics 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 Regulus Therapeutics will offset losses from the drop in Regulus Therapeutics' long position.| SIGA Technologies vs. Elanco Animal Health | SIGA Technologies vs. Esperion Therapeutics | SIGA Technologies vs. Catalent | SIGA Technologies vs. China Pharma Holdings |
| Regulus Therapeutics vs. Tenax Therapeutics | Regulus Therapeutics vs. Verastem | Regulus Therapeutics vs. Pulmatrix | Regulus Therapeutics vs. Cellectar Biosciences |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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