Correlation Between LENSAR and Regeneron Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both LENSAR 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 LENSAR and Regeneron Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LENSAR Inc and Regeneron Pharmaceuticals, you can compare the effects of market volatilities on LENSAR 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 LENSAR with a short position of Regeneron Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of LENSAR and Regeneron Pharmaceuticals.
Diversification Opportunities for LENSAR and Regeneron Pharmaceuticals
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LENSAR and Regeneron is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding LENSAR Inc and Regeneron Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals and LENSAR 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 LENSAR 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 LENSAR i.e., LENSAR and Regeneron Pharmaceuticals go up and down completely randomly.
Pair Corralation between LENSAR and Regeneron Pharmaceuticals
Given the investment horizon of 90 days LENSAR Inc is expected to generate 3.97 times more return on investment than Regeneron Pharmaceuticals. However, LENSAR is 3.97 times more volatile than Regeneron Pharmaceuticals. It trades about 0.12 of its potential returns per unit of risk. Regeneron Pharmaceuticals is currently generating about -0.02 per unit of risk. If you would invest 226.00 in LENSAR Inc on September 3, 2024 and sell it today you would earn a total of 529.00 from holding LENSAR Inc or generate 234.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LENSAR Inc vs. Regeneron Pharmaceuticals
Performance |
| Timeline |
| LENSAR Inc |
| Regeneron Pharmaceuticals |
LENSAR and Regeneron Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LENSAR and Regeneron Pharmaceuticals
The main advantage of trading using opposite LENSAR and Regeneron Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LENSAR 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.The idea behind LENSAR Inc and Regeneron Pharmaceuticals 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.| Regeneron Pharmaceuticals vs. DiaMedica Therapeutics | Regeneron Pharmaceuticals vs. Lyra Therapeutics | Regeneron Pharmaceuticals vs. Centessa Pharmaceuticals PLC |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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