Correlation Between Regeneron Pharmaceuticals and Baldwin Insurance
Can any of the company-specific risk be diversified away by investing in both Regeneron Pharmaceuticals and Baldwin Insurance 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 Baldwin Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regeneron Pharmaceuticals and The Baldwin Insurance, you can compare the effects of market volatilities on Regeneron Pharmaceuticals and Baldwin Insurance 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 Baldwin Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and Baldwin Insurance.
Diversification Opportunities for Regeneron Pharmaceuticals and Baldwin Insurance
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Regeneron and Baldwin is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and The Baldwin Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baldwin Insurance 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 Baldwin Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baldwin Insurance has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Baldwin Insurance go up and down completely randomly.
Pair Corralation between Regeneron Pharmaceuticals and Baldwin Insurance
Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to under-perform the Baldwin Insurance. But the stock apears to be less risky and, when comparing its historical volatility, Regeneron Pharmaceuticals is 1.82 times less risky than Baldwin Insurance. The stock trades about -0.01 of its potential returns per unit of risk. The The Baldwin Insurance is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,980 in The Baldwin Insurance on November 1, 2024 and sell it today you would earn a total of 1,143 from holding The Baldwin Insurance or generate 38.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Regeneron Pharmaceuticals vs. The Baldwin Insurance
Performance |
| Timeline |
| Regeneron Pharmaceuticals |
| Baldwin Insurance |
Regeneron Pharmaceuticals and Baldwin Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regeneron Pharmaceuticals and Baldwin Insurance
The main advantage of trading using opposite Regeneron Pharmaceuticals and Baldwin Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals position performs unexpectedly, Baldwin Insurance 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 Baldwin Insurance will offset losses from the drop in Baldwin Insurance'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 |
| Baldwin Insurance vs. Abcellera Biologics | Baldwin Insurance vs. Regeneron Pharmaceuticals | Baldwin Insurance vs. Lipocine | Baldwin Insurance vs. Sonos 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |