Correlation Between Enhabit and Regeneron Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Enhabit 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 Enhabit and Regeneron Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enhabit and Regeneron Pharmaceuticals, you can compare the effects of market volatilities on Enhabit 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 Enhabit with a short position of Regeneron Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enhabit and Regeneron Pharmaceuticals.
Diversification Opportunities for Enhabit and Regeneron Pharmaceuticals
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enhabit and Regeneron is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Enhabit and Regeneron Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals and Enhabit 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 Enhabit 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 Enhabit i.e., Enhabit and Regeneron Pharmaceuticals go up and down completely randomly.
Pair Corralation between Enhabit and Regeneron Pharmaceuticals
Given the investment horizon of 90 days Enhabit is expected to generate 1.57 times less return on investment than Regeneron Pharmaceuticals. In addition to that, Enhabit is 1.07 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 0.04 per unit of volatility. If you would invest 66,599 in Regeneron Pharmaceuticals on December 5, 2024 and sell it today you would earn a total of 828.00 from holding Regeneron Pharmaceuticals or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enhabit vs. Regeneron Pharmaceuticals
Performance |
| Timeline |
| Enhabit |
| Regeneron Pharmaceuticals |
Enhabit and Regeneron Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enhabit and Regeneron Pharmaceuticals
The main advantage of trading using opposite Enhabit and Regeneron Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enhabit 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.| Enhabit vs. The Ensign Group | ||
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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