Correlation Between Regenx Tech and GoGold Resources

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

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

Diversification Opportunities for Regenx Tech and GoGold Resources

0.71

Correlation Coefficient

Regenx Tech  GoGold Resources

Poor diversification

The 3 months correlation between Regenx and GoGold is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Regenx Tech Corp and GoGold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoGold Resources and Regenx Tech 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 Regenx Tech Corp are associated (or correlated) with GoGold Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoGold Resources has no effect on the direction of Regenx Tech i.e., Regenx Tech and GoGold Resources go up and down completely randomly.

Pair Corralation between Regenx Tech and GoGold Resources

Assuming the 90 days horizon Regenx Tech Corp is expected to generate 4.0 times more return on investment than GoGold Resources. However, Regenx Tech is 4.0 times more volatile than GoGold Resources. It trades about 0.13 of its potential returns per unit of risk. GoGold Resources is currently generating about 0.25 per unit of risk. If you would invest  0.74  in Regenx Tech Corp on December 29, 2024 and sell it today you would earn a total of  0.66  from holding Regenx Tech Corp or generate 89.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Regenx Tech Corp  vs.  GoGold Resources

Regenx Tech Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Regenx Tech Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Regenx Tech reported solid returns over the last few months and may actually be approaching a breakup point.

GoGold Resources

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in GoGold Resources are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, GoGold Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Regenx Tech and GoGold Resources

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

The idea behind Regenx Tech Corp and GoGold Resources 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.