Correlation Between Regional Management and Jeffs Brands

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

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

Diversification Opportunities for Regional Management and Jeffs Brands

-0.24

Correlation Coefficient

Regional Management  Jeffs Brands

Very good diversification

The 3 months correlation between Regional and Jeffs is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Regional Management Corp and Jeffs Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeffs Brands and Regional Management 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 Regional Management Corp are associated (or correlated) with Jeffs Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeffs Brands has no effect on the direction of Regional Management i.e., Regional Management and Jeffs Brands go up and down completely randomly.

Pair Corralation between Regional Management and Jeffs Brands

Allowing for the 90-day total investment horizon Regional Management Corp is expected to generate 0.19 times more return on investment than Jeffs Brands. However, Regional Management Corp is 5.28 times less risky than Jeffs Brands. It trades about 0.13 of its potential returns per unit of risk. Jeffs Brands is currently generating about -0.09 per unit of risk. If you would invest  2,814  in Regional Management Corp on May 6, 2025 and sell it today you would earn a total of  467.00  from holding Regional Management Corp or generate 16.6% return on investment over 90 days.

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

Regional Management Corp  vs.  Jeffs Brands

Regional Management Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Regional Management Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very weak primary indicators, Regional Management displayed solid returns over the last few months and may actually be approaching a breakup point.

Jeffs Brands

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jeffs Brands has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's fundamental drivers remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Regional Management and Jeffs Brands

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

The idea behind Regional Management Corp and Jeffs Brands 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 Stocks Directory module to find actively traded stocks across global markets.