Correlation Between Regency Centers and Doubledown Interactive

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

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

Diversification Opportunities for Regency Centers and Doubledown Interactive

0.43

Correlation Coefficient

Regency Centers  Doubledown Interactive

Very weak diversification

The 3 months correlation between Regency and Doubledown is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Regency Centers and Doubledown Interactive Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubledown Interactive and Regency Centers 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 Regency Centers are associated (or correlated) with Doubledown Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubledown Interactive has no effect on the direction of Regency Centers i.e., Regency Centers and Doubledown Interactive go up and down completely randomly.

Pair Corralation between Regency Centers and Doubledown Interactive

Assuming the 90 days horizon Regency Centers is expected to generate 0.23 times more return on investment than Doubledown Interactive. However, Regency Centers is 4.4 times less risky than Doubledown Interactive. It trades about -0.08 of its potential returns per unit of risk. Doubledown Interactive Co is currently generating about -0.37 per unit of risk. If you would invest  2,426  in Regency Centers on September 14, 2024 and sell it today you would lose (33.00) from holding Regency Centers or give up 1.36% of portfolio value over 90 days.

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

Regency Centers  vs.  Doubledown Interactive Co

Regency Centers

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Regency Centers has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Regency Centers is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Doubledown Interactive

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Doubledown Interactive Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Doubledown Interactive is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Regency Centers and Doubledown Interactive

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

The idea behind Regency Centers and Doubledown Interactive Co 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.