Correlation Between Futuris and REGI US

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

By analyzing existing cross correlation between Futuris Company and REGI Inc, you can compare the effects of market volatilities on Futuris and REGI US 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 Futuris with a short position of REGI US. Check out your portfolio center. Please also check ongoing floating volatility patterns of Futuris and REGI US.

Diversification Opportunities for Futuris and REGI US

-0.1

Correlation Coefficient

Futuris  REGI US

Good diversification

The 3 months correlation between Futuris and REGI is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Futuris Company and REGI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REGI Inc and Futuris 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 Futuris Company are associated (or correlated) with REGI US. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REGI Inc has no effect on the direction of Futuris i.e., Futuris and REGI US go up and down completely randomly.

Pair Corralation between Futuris and REGI US

Given the investment horizon of 90 days Futuris is expected to generate 3.64 times less return on investment than REGI US. In addition to that, Futuris is 1.43 times more volatile than REGI Inc. It trades about 0.01 of its total potential returns per unit of risk. REGI Inc is currently generating about 0.06 per unit of volatility. If you would invest  0.01  in REGI Inc on July 11, 2025 and sell it today you would earn a total of  0.00  from holding REGI Inc or generate 0.0% return on investment over 90 days.

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

Futuris Company  vs.  REGI Inc

Futuris Company

Risk-Adjusted Performance

Weakest

Over the last 90 days Futuris Company has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively fragile basic indicators, Futuris unveiled solid returns over the last few months and may actually be approaching a breakup point.

REGI Inc

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in REGI Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, REGI US unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Futuris and REGI US

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

The idea behind Futuris Company and REGI Inc 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.