Correlation Between Regeneron Pharmaceuticals and Alexion Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Regeneron Pharmaceuticals and Alexion 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 Regeneron Pharmaceuticals and Alexion Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regeneron Pharmaceuticals and Alexion Pharmaceuticals, you can compare the effects of market volatilities on Regeneron Pharmaceuticals and Alexion 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 Regeneron Pharmaceuticals with a short position of Alexion Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and Alexion Pharmaceuticals.
Diversification Opportunities for Regeneron Pharmaceuticals and Alexion Pharmaceuticals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Regeneron and Alexion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Alexion Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alexion Pharmaceuticals 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 Alexion Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alexion Pharmaceuticals has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Alexion Pharmaceuticals go up and down completely randomly.
Pair Corralation between Regeneron Pharmaceuticals and Alexion Pharmaceuticals
If you would invest 70,169 in Regeneron Pharmaceuticals on November 30, 2024 and sell it today you would lose (295.00) from holding Regeneron Pharmaceuticals or give up 0.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Regeneron Pharmaceuticals vs. Alexion Pharmaceuticals
Performance |
| Timeline |
| Regeneron Pharmaceuticals |
| Alexion Pharmaceuticals |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Regeneron Pharmaceuticals and Alexion Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regeneron Pharmaceuticals and Alexion Pharmaceuticals
The main advantage of trading using opposite Regeneron Pharmaceuticals and Alexion Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals position performs unexpectedly, Alexion 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 Alexion Pharmaceuticals will offset losses from the drop in Alexion Pharmaceuticals' long position.| Regeneron Pharmaceuticals vs. Crispr Therapeutics AG | Regeneron Pharmaceuticals vs. Novo Nordisk AS | Regeneron Pharmaceuticals vs. Sarepta Therapeutics | Regeneron Pharmaceuticals vs. Intellia Therapeutics |
| Alexion Pharmaceuticals vs. Sunlands Technology Group | Alexion Pharmaceuticals vs. Air Products and | Alexion Pharmaceuticals vs. Lindblad Expeditions Holdings | Alexion Pharmaceuticals vs. Ihuman Inc |
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 Stocks Directory module to find actively traded stocks across global markets.
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