Correlation Between Regenxbio and Cytodyn

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

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

Diversification Opportunities for Regenxbio and Cytodyn

0.56

Correlation Coefficient

Regenxbio  Cytodyn

Very weak diversification

The 3 months correlation between Regenxbio and Cytodyn is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Regenxbio and Cytodyn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytodyn and Regenxbio 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 Regenxbio are associated (or correlated) with Cytodyn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytodyn has no effect on the direction of Regenxbio i.e., Regenxbio and Cytodyn go up and down completely randomly.

Pair Corralation between Regenxbio and Cytodyn

Given the investment horizon of 90 days Regenxbio is expected to generate 1.1 times more return on investment than Cytodyn. However, Regenxbio is 1.1 times more volatile than Cytodyn. It trades about -0.02 of its potential returns per unit of risk. Cytodyn is currently generating about -0.09 per unit of risk. If you would invest  1,179  in Regenxbio on September 10, 2024 and sell it today you would lose (162.00) from holding Regenxbio or give up 13.74% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.46%
Values	Daily Returns

Regenxbio  vs.  Cytodyn

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.

Cytodyn

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cytodyn has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Regenxbio and Cytodyn

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

The idea behind Regenxbio and Cytodyn 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.