Correlation Between Regenerx Biopharm and ImmuCell

Can any of the company-specific risk be diversified away by investing in both Regenerx Biopharm and ImmuCell 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 ImmuCell 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 ImmuCell, you can compare the effects of market volatilities on Regenerx Biopharm and ImmuCell 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 ImmuCell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regenerx Biopharm and ImmuCell.

Diversification Opportunities for Regenerx Biopharm and ImmuCell

-0.13

Correlation Coefficient

Regenerx Biopharm  ImmuCell

Good diversification

The 3 months correlation between Regenerx and ImmuCell is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Regenerx Biopharm In and ImmuCell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmuCell 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 ImmuCell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmuCell has no effect on the direction of Regenerx Biopharm i.e., Regenerx Biopharm and ImmuCell go up and down completely randomly.

Pair Corralation between Regenerx Biopharm and ImmuCell

If you would invest  358.00  in ImmuCell on September 15, 2024 and sell it today you would earn a total of  134.00  from holding ImmuCell or generate 37.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Regenerx Biopharm In  vs.  ImmuCell

Regenerx Biopharm

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Regenerx Biopharm In has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Regenerx Biopharm is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

ImmuCell

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ImmuCell are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental indicators, ImmuCell exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Regenerx Biopharm and ImmuCell

The main advantage of trading using opposite Regenerx Biopharm and ImmuCell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regenerx Biopharm position performs unexpectedly, ImmuCell 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 ImmuCell will offset losses from the drop in ImmuCell's long position.

The idea behind Regenerx Biopharm In and ImmuCell pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.