Correlation Between PHINIA and Regeneron Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both PHINIA 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 PHINIA and Regeneron Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PHINIA Inc and Regeneron Pharmaceuticals, you can compare the effects of market volatilities on PHINIA 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 PHINIA with a short position of Regeneron Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHINIA and Regeneron Pharmaceuticals.
Diversification Opportunities for PHINIA and Regeneron Pharmaceuticals
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PHINIA and Regeneron is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding PHINIA Inc and Regeneron Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals and PHINIA 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 PHINIA 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 PHINIA i.e., PHINIA and Regeneron Pharmaceuticals go up and down completely randomly.
Pair Corralation between PHINIA and Regeneron Pharmaceuticals
Given the investment horizon of 90 days PHINIA Inc is expected to generate 1.16 times more return on investment than Regeneron Pharmaceuticals. However, PHINIA is 1.16 times more volatile than Regeneron Pharmaceuticals. It trades about 0.4 of its potential returns per unit of risk. Regeneron Pharmaceuticals is currently generating about -0.39 per unit of risk. If you would invest 4,430 in PHINIA Inc on August 31, 2024 and sell it today you would earn a total of 1,095 from holding PHINIA Inc or generate 24.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PHINIA Inc vs. Regeneron Pharmaceuticals
Performance |
| Timeline |
| PHINIA Inc |
| Regeneron Pharmaceuticals |
PHINIA and Regeneron Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHINIA and Regeneron Pharmaceuticals
The main advantage of trading using opposite PHINIA and Regeneron Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHINIA 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 PHINIA 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. 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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