Correlation Between ReGen III and COSCO SHIPPING
Can any of the company-specific risk be diversified away by investing in both ReGen III and COSCO SHIPPING 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 ReGen III and COSCO SHIPPING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ReGen III Corp and COSCO SHIPPING International, you can compare the effects of market volatilities on ReGen III and COSCO SHIPPING 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 ReGen III with a short position of COSCO SHIPPING. Check out your portfolio center. Please also check ongoing floating volatility patterns of ReGen III and COSCO SHIPPING.
Diversification Opportunities for ReGen III and COSCO SHIPPING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ReGen and COSCO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ReGen III Corp and COSCO SHIPPING International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSCO SHIPPING Inter and ReGen III 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 ReGen III Corp are associated (or correlated) with COSCO SHIPPING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSCO SHIPPING Inter has no effect on the direction of ReGen III i.e., ReGen III and COSCO SHIPPING go up and down completely randomly.
Pair Corralation between ReGen III and COSCO SHIPPING
Assuming the 90 days horizon ReGen III Corp is expected to under-perform the COSCO SHIPPING. In addition to that, ReGen III is 1.6 times more volatile than COSCO SHIPPING International. It trades about -0.27 of its total potential returns per unit of risk. COSCO SHIPPING International is currently generating about 0.22 per unit of volatility. If you would invest 41.00 in COSCO SHIPPING International on January 26, 2024 and sell it today you would earn a total of 4.00 from holding COSCO SHIPPING International or generate 9.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ReGen III Corp vs. COSCO SHIPPING International
Performance |
| Timeline |
| ReGen III Corp |
| COSCO SHIPPING Inter |
ReGen III and COSCO SHIPPING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ReGen III and COSCO SHIPPING
The main advantage of trading using opposite ReGen III and COSCO SHIPPING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ReGen III position performs unexpectedly, COSCO SHIPPING 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 COSCO SHIPPING will offset losses from the drop in COSCO SHIPPING's long position.| ReGen III vs. HF Sinclair Corp | ReGen III vs. Idemitsu Kosan Co | ReGen III vs. PBF Energy | ReGen III vs. Delek Energy |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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