Correlation Between Ocular Therapeutix and Regenxbio

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

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

Diversification Opportunities for Ocular Therapeutix and Regenxbio

-0.1

Correlation Coefficient

Ocular Therapeutix  Regenxbio

Good diversification

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

Pair Corralation between Ocular Therapeutix and Regenxbio

Given the investment horizon of 90 days Ocular Therapeutix is expected to generate 0.64 times more return on investment than Regenxbio. However, Ocular Therapeutix is 1.57 times less risky than Regenxbio. It trades about 0.29 of its potential returns per unit of risk. Regenxbio is currently generating about 0.07 per unit of risk. If you would invest  705.00  in Ocular Therapeutix on May 7, 2025 and sell it today you would earn a total of  530.00  from holding Ocular Therapeutix or generate 75.18% return on investment over 90 days.

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

Ocular Therapeutix  vs.  Regenxbio

Ocular Therapeutix

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ocular Therapeutix are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating basic indicators, Ocular Therapeutix disclosed solid returns over the last few months and may actually be approaching a breakup point.

Regenxbio

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Regenxbio are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Regenxbio showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ocular Therapeutix and Regenxbio

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

The idea behind Ocular Therapeutix and Regenxbio 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.