Correlation Between YS Old and Regen BioPharma

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

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

Diversification Opportunities for YS Old and Regen BioPharma

0.75

Correlation Coefficient

YS Old  Regen BioPharma

Poor diversification

The 3 months correlation between YS Old and Regen is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding YS Old and Regen BioPharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regen BioPharma and YS Old 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 YS Old are associated (or correlated) with Regen BioPharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regen BioPharma has no effect on the direction of YS Old i.e., YS Old and Regen BioPharma go up and down completely randomly.

Pair Corralation between YS Old and Regen BioPharma

If you would invest  5.01  in Regen BioPharma on October 10, 2024 and sell it today you would earn a total of  3.98  from holding Regen BioPharma or generate 79.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	4.76%
Values	Daily Returns

YS Old  vs.  Regen BioPharma

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.

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 inconsistent basic indicators, Regen BioPharma reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with YS Old and Regen BioPharma

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

The idea behind YS Old and Regen BioPharma 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.