Correlation Between Regeneron Pharmaceuticals and Atco Mining
Can any of the company-specific risk be diversified away by investing in both Regeneron Pharmaceuticals and Atco Mining 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 Atco Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regeneron Pharmaceuticals and Atco Mining, you can compare the effects of market volatilities on Regeneron Pharmaceuticals and Atco Mining 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 Atco Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and Atco Mining.
Diversification Opportunities for Regeneron Pharmaceuticals and Atco Mining
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Regeneron and Atco is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Atco Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atco Mining 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 Atco Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atco Mining has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Atco Mining go up and down completely randomly.
Pair Corralation between Regeneron Pharmaceuticals and Atco Mining
Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to under-perform the Atco Mining. But the stock apears to be less risky and, when comparing its historical volatility, Regeneron Pharmaceuticals is 11.89 times less risky than Atco Mining. The stock trades about -0.03 of its potential returns per unit of risk. The Atco Mining is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3.52 in Atco Mining on September 2, 2024 and sell it today you would lose (2.20) from holding Atco Mining or give up 62.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regeneron Pharmaceuticals vs. Atco Mining
Performance |
| Timeline |
| Regeneron Pharmaceuticals |
| Atco Mining |
Regeneron Pharmaceuticals and Atco Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regeneron Pharmaceuticals and Atco Mining
The main advantage of trading using opposite Regeneron Pharmaceuticals and Atco Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals position performs unexpectedly, Atco Mining 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 Atco Mining will offset losses from the drop in Atco Mining's long position.| Regeneron Pharmaceuticals vs. Crispr Therapeutics AG | Regeneron Pharmaceuticals vs. Novo Nordisk AS | Regeneron Pharmaceuticals vs. Sarepta Therapeutics | Regeneron Pharmaceuticals vs. Intellia Therapeutics |
| Atco Mining vs. Regeneron Pharmaceuticals | Atco Mining vs. FiscalNote Holdings | Atco Mining vs. Definitive Healthcare Corp | Atco Mining vs. Asure Software |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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