Correlation Between Regent Ventures and Imagion Biosystems

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

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

Diversification Opportunities for Regent Ventures and Imagion Biosystems

-1.0

Correlation Coefficient

Regent Ventures  Imagion Biosystems

Pay attention - limited upside

The 3 months correlation between Regent and Imagion is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding Regent Ventures and Imagion Biosystems Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imagion Biosystems and Regent Ventures 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 Regent Ventures are associated (or correlated) with Imagion Biosystems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imagion Biosystems has no effect on the direction of Regent Ventures i.e., Regent Ventures and Imagion Biosystems go up and down completely randomly.

Pair Corralation between Regent Ventures and Imagion Biosystems

If you would invest  3.50  in Imagion Biosystems Limited on September 15, 2024 and sell it today you would earn a total of  0.00  from holding Imagion Biosystems Limited or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Strong
Accuracy	96.97%
Values	Daily Returns

Regent Ventures  vs.  Imagion Biosystems Limited

Regent Ventures

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Regent Ventures has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Regent Ventures is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Imagion Biosystems

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Imagion Biosystems Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Imagion Biosystems is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Regent Ventures and Imagion Biosystems

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

The idea behind Regent Ventures and Imagion Biosystems Limited 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.