Correlation Between Regal Investment and Imugene

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

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

Diversification Opportunities for Regal Investment and Imugene

0.51

Correlation Coefficient

Regal Investment  Imugene

Very weak diversification

The 3 months correlation between Regal and Imugene is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Regal Investment and Imugene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imugene and Regal Investment 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 Regal Investment are associated (or correlated) with Imugene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imugene has no effect on the direction of Regal Investment i.e., Regal Investment and Imugene go up and down completely randomly.

Pair Corralation between Regal Investment and Imugene

Assuming the 90 days trading horizon Regal Investment is expected to under-perform the Imugene. But the stock apears to be less risky and, when comparing its historical volatility, Regal Investment is 5.28 times less risky than Imugene. The stock trades about -0.05 of its potential returns per unit of risk. The Imugene is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  3.80  in Imugene on October 8, 2024 and sell it today you would earn a total of  0.10  from holding Imugene or generate 2.63% return on investment over 90 days.

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

Regal Investment  vs.  Imugene

Regal Investment

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Regal Investment are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Regal Investment is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Imugene

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Imugene has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Regal Investment and Imugene

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

The idea behind Regal Investment and Imugene 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.