Correlation Between Regenx Tech and Scottie Resources

Can any of the company-specific risk be diversified away by investing in both Regenx Tech and Scottie 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 Scottie 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 Scottie Resources Corp, you can compare the effects of market volatilities on Regenx Tech and Scottie 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 Scottie Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regenx Tech and Scottie Resources.

Diversification Opportunities for Regenx Tech and Scottie Resources

-0.48

Correlation Coefficient

Regenx Tech  Scottie Resources

Very good diversification

The 3 months correlation between Regenx and Scottie is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Regenx Tech Corp and Scottie Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scottie Resources Corp 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 Scottie Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scottie Resources Corp has no effect on the direction of Regenx Tech i.e., Regenx Tech and Scottie Resources go up and down completely randomly.

Pair Corralation between Regenx Tech and Scottie Resources

Assuming the 90 days horizon Regenx Tech Corp is expected to generate 2.44 times more return on investment than Scottie Resources. However, Regenx Tech is 2.44 times more volatile than Scottie Resources Corp. It trades about -0.01 of its potential returns per unit of risk. Scottie Resources Corp is currently generating about -0.12 per unit of risk. If you would invest  0.87  in Regenx Tech Corp on February 11, 2024 and sell it today you would lose (0.18) from holding Regenx Tech Corp or give up 20.69% of portfolio value over 90 days.

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

Regenx Tech Corp  vs.  Scottie Resources Corp

Regenx Tech Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Regenx Tech Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in June 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Scottie Resources Corp

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Scottie Resources Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Scottie Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Regenx Tech and Scottie Resources

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

The idea behind Regenx Tech Corp and Scottie Resources Corp 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.