Correlation Between Dana and Regeneron Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Dana and Regeneron Pharmaceuticals 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 Dana and Regeneron Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dana Inc and Regeneron Pharmaceuticals, you can compare the effects of market volatilities on Dana and Regeneron Pharmaceuticals 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 Dana with a short position of Regeneron Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana and Regeneron Pharmaceuticals.
Diversification Opportunities for Dana and Regeneron Pharmaceuticals
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dana and Regeneron is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Dana Inc and Regeneron Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals and Dana 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 Dana Inc are associated (or correlated) with Regeneron Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regeneron Pharmaceuticals has no effect on the direction of Dana i.e., Dana and Regeneron Pharmaceuticals go up and down completely randomly.
Pair Corralation between Dana and Regeneron Pharmaceuticals
Considering the 90-day investment horizon Dana Inc is expected to under-perform the Regeneron Pharmaceuticals. In addition to that, Dana is 2.1 times more volatile than Regeneron Pharmaceuticals. It trades about -0.02 of its total potential returns per unit of risk. Regeneron Pharmaceuticals is currently generating about 0.02 per unit of volatility. If you would invest 72,302 in Regeneron Pharmaceuticals on September 12, 2024 and sell it today you would earn a total of 5,548 from holding Regeneron Pharmaceuticals or generate 7.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dana Inc vs. Regeneron Pharmaceuticals
Performance |
| Timeline |
| Dana Inc |
| Regeneron Pharmaceuticals |
Dana and Regeneron Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dana and Regeneron Pharmaceuticals
The main advantage of trading using opposite Dana and Regeneron Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dana position performs unexpectedly, Regeneron Pharmaceuticals 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 Regeneron Pharmaceuticals will offset losses from the drop in Regeneron Pharmaceuticals' long position.| Dana vs. Cooper Stnd | Dana vs. Motorcar Parts of | Dana vs. American Axle Manufacturing | Dana vs. Stoneridge |
| Regeneron Pharmaceuticals vs. Crispr Therapeutics AG | Regeneron Pharmaceuticals vs. Novo Nordisk AS | Regeneron Pharmaceuticals vs. Sarepta Therapeutics | Regeneron Pharmaceuticals vs. Intellia Therapeutics |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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