Correlation Between Cardiff Oncology and Regenxbio

Can any of the company-specific risk be diversified away by investing in both Cardiff Oncology and Regenxbio 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 Cardiff Oncology and Regenxbio into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cardiff Oncology and Regenxbio, you can compare the effects of market volatilities on Cardiff Oncology and Regenxbio 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 Cardiff Oncology with a short position of Regenxbio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardiff Oncology and Regenxbio.

Diversification Opportunities for Cardiff Oncology and Regenxbio

-0.22

Correlation Coefficient

Cardiff Oncology  Regenxbio

Very good diversification

The 3 months correlation between Cardiff and Regenxbio is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Cardiff Oncology and Regenxbio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regenxbio and Cardiff Oncology 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 Cardiff Oncology are associated (or correlated) with Regenxbio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regenxbio has no effect on the direction of Cardiff Oncology i.e., Cardiff Oncology and Regenxbio go up and down completely randomly.

Pair Corralation between Cardiff Oncology and Regenxbio

Given the investment horizon of 90 days Cardiff Oncology is expected to under-perform the Regenxbio. In addition to that, Cardiff Oncology is 1.16 times more volatile than Regenxbio. It trades about -0.03 of its total potential returns per unit of risk. Regenxbio is currently generating about 0.03 per unit of volatility. If you would invest  956.00  in Regenxbio on September 8, 2024 and sell it today you would earn a total of  2.00  from holding Regenxbio or generate 0.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Cardiff Oncology  vs.  Regenxbio

Cardiff Oncology

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cardiff Oncology are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent fundamental indicators, Cardiff Oncology may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Regenxbio

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Regenxbio has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Cardiff Oncology and Regenxbio

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

The idea behind Cardiff Oncology and Regenxbio 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.