Correlation Between Highway Holdings and Regeneron Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Highway Holdings 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 Highway Holdings and Regeneron Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highway Holdings Limited and Regeneron Pharmaceuticals, you can compare the effects of market volatilities on Highway Holdings 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 Highway Holdings with a short position of Regeneron Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway Holdings and Regeneron Pharmaceuticals.
Diversification Opportunities for Highway Holdings and Regeneron Pharmaceuticals
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Highway and Regeneron is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Highway Holdings Limited and Regeneron Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals and Highway Holdings 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 Highway Holdings Limited 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 Highway Holdings i.e., Highway Holdings and Regeneron Pharmaceuticals go up and down completely randomly.
Pair Corralation between Highway Holdings and Regeneron Pharmaceuticals
Given the investment horizon of 90 days Highway Holdings Limited is expected to generate 1.48 times more return on investment than Regeneron Pharmaceuticals. However, Highway Holdings is 1.48 times more volatile than Regeneron Pharmaceuticals. It trades about -0.26 of its potential returns per unit of risk. Regeneron Pharmaceuticals is currently generating about -0.47 per unit of risk. If you would invest 236.00 in Highway Holdings Limited on August 24, 2024 and sell it today you would lose (43.00) from holding Highway Holdings Limited or give up 18.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Highway Holdings Limited vs. Regeneron Pharmaceuticals
Performance |
| Timeline |
| Highway Holdings |
| Regeneron Pharmaceuticals |
Highway Holdings and Regeneron Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highway Holdings and Regeneron Pharmaceuticals
The main advantage of trading using opposite Highway Holdings and Regeneron Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway Holdings 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.| Highway Holdings vs. Deswell Industries | Highway Holdings vs. Euro Tech Holdings | Highway Holdings vs. China Natural Resources | Highway Holdings vs. Arts Way Manufacturing Co |
| 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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