Correlation Between Regenx Tech and Western Alaska

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

Diversification Opportunities for Regenx Tech and Western Alaska

0.55

Correlation Coefficient

Regenx Tech  Western Alaska

Very weak diversification

The 3 months correlation between Regenx and Western is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Regenx Tech Corp and Western Alaska Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Alaska Minerals 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 Western Alaska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Alaska Minerals has no effect on the direction of Regenx Tech i.e., Regenx Tech and Western Alaska go up and down completely randomly.

Pair Corralation between Regenx Tech and Western Alaska

Assuming the 90 days horizon Regenx Tech Corp is expected to generate 2.03 times more return on investment than Western Alaska. However, Regenx Tech is 2.03 times more volatile than Western Alaska Minerals. It trades about 0.07 of its potential returns per unit of risk. Western Alaska Minerals is currently generating about -0.01 per unit of risk. If you would invest  1.09  in Regenx Tech Corp on September 1, 2024 and sell it today you would lose (0.04) from holding Regenx Tech Corp or give up 3.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Regenx Tech Corp  vs.  Western Alaska Minerals

Regenx Tech Corp

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Regenx Tech Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Regenx Tech reported solid returns over the last few months and may actually be approaching a breakup point.

Western Alaska Minerals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Western Alaska Minerals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Western Alaska is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Regenx Tech and Western Alaska

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

The idea behind Regenx Tech Corp and Western Alaska Minerals 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.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.