Correlation Between Regis Common and MEDIFAST INC

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

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

Diversification Opportunities for Regis Common and MEDIFAST INC

-0.36

Correlation Coefficient

Regis Common  MEDIFAST INC

Very good diversification

The 3 months correlation between Regis and MEDIFAST is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Regis Common and MEDIFAST INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDIFAST INC and Regis Common 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 Regis Common are associated (or correlated) with MEDIFAST INC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDIFAST INC has no effect on the direction of Regis Common i.e., Regis Common and MEDIFAST INC go up and down completely randomly.

Pair Corralation between Regis Common and MEDIFAST INC

Considering the 90-day investment horizon Regis Common is expected to under-perform the MEDIFAST INC. In addition to that, Regis Common is 2.18 times more volatile than MEDIFAST INC. It trades about -0.05 of its total potential returns per unit of risk. MEDIFAST INC is currently generating about -0.03 per unit of volatility. If you would invest  1,941  in MEDIFAST INC on August 19, 2024 and sell it today you would lose (127.00) from holding MEDIFAST INC or give up 6.54% of portfolio value over 90 days.

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

Regis Common  vs.  MEDIFAST INC

Regis Common

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Regis Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in December 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

MEDIFAST INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MEDIFAST INC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, MEDIFAST INC is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Regis Common and MEDIFAST INC

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

The idea behind Regis Common and MEDIFAST 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.