Correlation Between Regen BioPharma and YS Old

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

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

Diversification Opportunities for Regen BioPharma and YS Old

0.38

Correlation Coefficient

Regen BioPharma  YS Old

Weak diversification

The 3 months correlation between Regen and YS Old is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Regen BioPharma and YS Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YS Old 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 YS Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YS Old has no effect on the direction of Regen BioPharma i.e., Regen BioPharma and YS Old go up and down completely randomly.

Pair Corralation between Regen BioPharma and YS Old

If you would invest  6.20  in Regen BioPharma on October 25, 2024 and sell it today you would earn a total of  2.75  from holding Regen BioPharma or generate 44.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	5.0%
Values	Daily Returns

Regen BioPharma  vs.  YS Old

Regen BioPharma

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Regen BioPharma are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Regen BioPharma reported solid returns over the last few months and may actually be approaching a breakup point.

YS Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days YS Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, YS Old is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Regen BioPharma and YS Old

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

The idea behind Regen BioPharma and YS Old 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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.