Correlation Between Regeneron Pharmaceuticals and Above Food
Can any of the company-specific risk be diversified away by investing in both Regeneron Pharmaceuticals and Above Food 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 Regeneron Pharmaceuticals and Above Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regeneron Pharmaceuticals and Above Food Ingredients, you can compare the effects of market volatilities on Regeneron Pharmaceuticals and Above Food 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 Regeneron Pharmaceuticals with a short position of Above Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and Above Food.
Diversification Opportunities for Regeneron Pharmaceuticals and Above Food
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Regeneron and Above is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Above Food Ingredients in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Above Food Ingredients and Regeneron Pharmaceuticals 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 Regeneron Pharmaceuticals are associated (or correlated) with Above Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Above Food Ingredients has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Above Food go up and down completely randomly.
Pair Corralation between Regeneron Pharmaceuticals and Above Food
Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to generate 0.21 times more return on investment than Above Food. However, Regeneron Pharmaceuticals is 4.87 times less risky than Above Food. It trades about 0.01 of its potential returns per unit of risk. Above Food Ingredients is currently generating about -0.06 per unit of risk. If you would invest 74,248 in Regeneron Pharmaceuticals on September 1, 2024 and sell it today you would earn a total of 774.00 from holding Regeneron Pharmaceuticals or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 75.15% |
| Values | Daily Returns |
Regeneron Pharmaceuticals vs. Above Food Ingredients
Performance |
| Timeline |
| Regeneron Pharmaceuticals |
| Above Food Ingredients |
Regeneron Pharmaceuticals and Above Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regeneron Pharmaceuticals and Above Food
The main advantage of trading using opposite Regeneron Pharmaceuticals and Above Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals position performs unexpectedly, Above Food 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 Above Food will offset losses from the drop in Above Food's long position.| Regeneron Pharmaceuticals vs. Tff Pharmaceuticals | Regeneron Pharmaceuticals vs. Eliem Therapeutics | Regeneron Pharmaceuticals vs. Inhibrx | Regeneron Pharmaceuticals vs. Enliven Therapeutics |
| Above Food vs. Apogee Therapeutics, Common | Above Food vs. Regeneron Pharmaceuticals | Above Food vs. Catalyst Pharmaceuticals | Above Food vs. Sellas Life Sciences |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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