Correlation Between Regis Resources and Vertiv Holdings

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

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

Diversification Opportunities for Regis Resources and Vertiv Holdings

-0.52

Correlation Coefficient

Regis Resources  Vertiv Holdings

Excellent diversification

The 3 months correlation between Regis and Vertiv is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Regis Resources and Vertiv Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vertiv Holdings and Regis Resources 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 Regis Resources are associated (or correlated) with Vertiv Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vertiv Holdings has no effect on the direction of Regis Resources i.e., Regis Resources and Vertiv Holdings go up and down completely randomly.

Pair Corralation between Regis Resources and Vertiv Holdings

Assuming the 90 days horizon Regis Resources is expected to generate 0.96 times more return on investment than Vertiv Holdings. However, Regis Resources is 1.04 times less risky than Vertiv Holdings. It trades about 0.14 of its potential returns per unit of risk. Vertiv Holdings Co is currently generating about -0.09 per unit of risk. If you would invest  154.00  in Regis Resources on December 28, 2024 and sell it today you would earn a total of  77.00  from holding Regis Resources or generate 50.0% return on investment over 90 days.

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

Regis Resources  vs.  Vertiv Holdings Co

Regis Resources

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Regis Resources are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Regis Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Vertiv Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vertiv Holdings Co 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 basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Regis Resources and Vertiv Holdings

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

The idea behind Regis Resources and Vertiv Holdings 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.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.