Correlation Between REX American and ASP Isotopes

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

By analyzing existing cross correlation between REX American Resources and ASP Isotopes Common, you can compare the effects of market volatilities on REX American and ASP Isotopes 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 REX American with a short position of ASP Isotopes. Check out your portfolio center. Please also check ongoing floating volatility patterns of REX American and ASP Isotopes.

Diversification Opportunities for REX American and ASP Isotopes

-0.04

Correlation Coefficient

REX American  ASP Isotopes

Good diversification

The 3 months correlation between REX and ASP is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding REX American Resources and ASP Isotopes Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASP Isotopes Common and REX American 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 REX American Resources are associated (or correlated) with ASP Isotopes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASP Isotopes Common has no effect on the direction of REX American i.e., REX American and ASP Isotopes go up and down completely randomly.

Pair Corralation between REX American and ASP Isotopes

Considering the 90-day investment horizon REX American Resources is expected to generate 0.24 times more return on investment than ASP Isotopes. However, REX American Resources is 4.16 times less risky than ASP Isotopes. It trades about 0.07 of its potential returns per unit of risk. ASP Isotopes Common is currently generating about -0.07 per unit of risk. If you would invest  3,042  in REX American Resources on August 27, 2025 and sell it today you would earn a total of  227.00  from holding REX American Resources or generate 7.46% return on investment over 90 days.

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

REX American Resources  vs.  ASP Isotopes Common

REX American Resources

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in REX American Resources are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady technical and fundamental indicators, REX American may actually be approaching a critical reversion point that can send shares even higher in December 2025.

ASP Isotopes Common

Risk-Adjusted Performance

Weakest

Over the last 90 days ASP Isotopes Common 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 fairly strong which may send shares a bit higher in December 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with REX American and ASP Isotopes

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

The idea behind REX American Resources and ASP Isotopes Common 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.