Correlation Between Lifecore Biomedical and Regeneron Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Lifecore Biomedical 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 Lifecore Biomedical and Regeneron Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifecore Biomedical and Regeneron Pharmaceuticals, you can compare the effects of market volatilities on Lifecore Biomedical 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 Lifecore Biomedical with a short position of Regeneron Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifecore Biomedical and Regeneron Pharmaceuticals.
Diversification Opportunities for Lifecore Biomedical and Regeneron Pharmaceuticals
-0.95 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lifecore and Regeneron is -0.95. Overlapping area represents the amount of risk that can be diversified away by holding Lifecore Biomedical and Regeneron Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals and Lifecore Biomedical 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 Lifecore Biomedical 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 Lifecore Biomedical i.e., Lifecore Biomedical and Regeneron Pharmaceuticals go up and down completely randomly.
Pair Corralation between Lifecore Biomedical and Regeneron Pharmaceuticals
Given the investment horizon of 90 days Lifecore Biomedical is expected to generate 3.82 times more return on investment than Regeneron Pharmaceuticals. However, Lifecore Biomedical is 3.82 times more volatile than Regeneron Pharmaceuticals. It trades about -0.01 of its potential returns per unit of risk. Regeneron Pharmaceuticals is currently generating about -0.32 per unit of risk. If you would invest 717.00 in Lifecore Biomedical on October 9, 2024 and sell it today you would lose (30.00) from holding Lifecore Biomedical or give up 4.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifecore Biomedical vs. Regeneron Pharmaceuticals
Performance |
| Timeline |
| Lifecore Biomedical |
| Regeneron Pharmaceuticals |
Lifecore Biomedical and Regeneron Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifecore Biomedical and Regeneron Pharmaceuticals
The main advantage of trading using opposite Lifecore Biomedical and Regeneron Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifecore Biomedical 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.| Lifecore Biomedical vs. Shuttle Pharmaceuticals | Lifecore Biomedical vs. Tilray Inc | Lifecore Biomedical vs. Kamada | Lifecore Biomedical vs. Cumberland Pharmaceuticals |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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