Correlation Between Nexstar Broadcasting and Regeneron Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Nexstar Broadcasting 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 Nexstar Broadcasting and Regeneron Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexstar Broadcasting Group and Regeneron Pharmaceuticals, you can compare the effects of market volatilities on Nexstar Broadcasting 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 Nexstar Broadcasting with a short position of Regeneron Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexstar Broadcasting and Regeneron Pharmaceuticals.
Diversification Opportunities for Nexstar Broadcasting and Regeneron Pharmaceuticals
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nexstar and Regeneron is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Nexstar Broadcasting Group and Regeneron Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals and Nexstar Broadcasting 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 Nexstar Broadcasting Group 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 Nexstar Broadcasting i.e., Nexstar Broadcasting and Regeneron Pharmaceuticals go up and down completely randomly.
Pair Corralation between Nexstar Broadcasting and Regeneron Pharmaceuticals
Given the investment horizon of 90 days Nexstar Broadcasting Group is expected to generate 1.24 times more return on investment than Regeneron Pharmaceuticals. However, Nexstar Broadcasting is 1.24 times more volatile than Regeneron Pharmaceuticals. It trades about 0.04 of its potential returns per unit of risk. Regeneron Pharmaceuticals is currently generating about -0.39 per unit of risk. If you would invest 16,480 in Nexstar Broadcasting Group on September 3, 2024 and sell it today you would earn a total of 579.00 from holding Nexstar Broadcasting Group or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexstar Broadcasting Group vs. Regeneron Pharmaceuticals
Performance |
| Timeline |
| Nexstar Broadcasting |
| Regeneron Pharmaceuticals |
Nexstar Broadcasting and Regeneron Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexstar Broadcasting and Regeneron Pharmaceuticals
The main advantage of trading using opposite Nexstar Broadcasting and Regeneron Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexstar Broadcasting 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.| Nexstar Broadcasting vs. News Corp B | Nexstar Broadcasting vs. Fox Corp Class | Nexstar Broadcasting vs. Liberty Media | Nexstar Broadcasting vs. AMC Networks |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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