Correlation Between Regen BioPharma and Cardiff Oncology

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

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

Diversification Opportunities for Regen BioPharma and Cardiff Oncology

0.37

Correlation Coefficient

Regen BioPharma  Cardiff Oncology

Weak diversification

The 3 months correlation between Regen and Cardiff is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Regen BioPharma and Cardiff Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardiff Oncology and Regen BioPharma 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 BioPharma are associated (or correlated) with Cardiff Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardiff Oncology has no effect on the direction of Regen BioPharma i.e., Regen BioPharma and Cardiff Oncology go up and down completely randomly.

Pair Corralation between Regen BioPharma and Cardiff Oncology

Assuming the 90 days horizon Regen BioPharma is expected to generate 2.7 times more return on investment than Cardiff Oncology. However, Regen BioPharma is 2.7 times more volatile than Cardiff Oncology. It trades about 0.1 of its potential returns per unit of risk. Cardiff Oncology is currently generating about 0.0 per unit of risk. If you would invest  7.00  in Regen BioPharma on May 2, 2025 and sell it today you would earn a total of  2.00  from holding Regen BioPharma or generate 28.57% return on investment over 90 days.

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

Regen BioPharma  vs.  Cardiff Oncology

Regen BioPharma

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Regen BioPharma are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Regen BioPharma reported solid returns over the last few months and may actually be approaching a breakup point.

Cardiff Oncology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cardiff Oncology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Cardiff Oncology is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Regen BioPharma and Cardiff Oncology

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

The idea behind Regen BioPharma and Cardiff Oncology 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.