Correlation Between Regen BioPharma and Kiromic Biopharma

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

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

Diversification Opportunities for Regen BioPharma and Kiromic Biopharma

0.0

Correlation Coefficient

Regen BioPharma  Kiromic Biopharma

Pay attention - limited upside

The 3 months correlation between Regen and Kiromic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Regen BioPharma and Kiromic Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kiromic Biopharma and Regen BioPharma 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 Regen BioPharma are associated (or correlated) with Kiromic Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kiromic Biopharma has no effect on the direction of Regen BioPharma i.e., Regen BioPharma and Kiromic Biopharma go up and down completely randomly.

Pair Corralation between Regen BioPharma and Kiromic Biopharma

If you would invest  7.13  in Regen BioPharma on December 19, 2024 and sell it today you would earn a total of  0.08  from holding Regen BioPharma or generate 1.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Regen BioPharma  vs.  Kiromic Biopharma

Regen BioPharma

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Regen BioPharma are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent fundamental drivers, Regen BioPharma reported solid returns over the last few months and may actually be approaching a breakup point.

Kiromic Biopharma

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Regen BioPharma and Kiromic Biopharma

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

The idea behind Regen BioPharma and Kiromic Biopharma 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.