Correlation Between Regeneron Pharmaceuticals and Opthea
Can any of the company-specific risk be diversified away by investing in both Regeneron Pharmaceuticals and Opthea 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 Opthea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regeneron Pharmaceuticals and Opthea, you can compare the effects of market volatilities on Regeneron Pharmaceuticals and Opthea 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 Opthea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and Opthea.
Diversification Opportunities for Regeneron Pharmaceuticals and Opthea
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Regeneron and Opthea is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Opthea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opthea 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 Opthea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Opthea has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Opthea go up and down completely randomly.
Pair Corralation between Regeneron Pharmaceuticals and Opthea
Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to generate 0.26 times more return on investment than Opthea. However, Regeneron Pharmaceuticals is 3.8 times less risky than Opthea. It trades about 0.01 of its potential returns per unit of risk. Opthea is currently generating about -0.01 per unit of risk. If you would invest 74,756 in Regeneron Pharmaceuticals on September 3, 2024 and sell it today you would earn a total of 266.00 from holding Regeneron Pharmaceuticals or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regeneron Pharmaceuticals vs. Opthea
Performance |
| Timeline |
| Regeneron Pharmaceuticals |
| Opthea |
Regeneron Pharmaceuticals and Opthea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regeneron Pharmaceuticals and Opthea
The main advantage of trading using opposite Regeneron Pharmaceuticals and Opthea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals position performs unexpectedly, Opthea 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 Opthea will offset losses from the drop in Opthea's long position.The idea behind Regeneron Pharmaceuticals and Opthea 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.
| Opthea vs. Here Media | Opthea vs. Playtika Holding Corp | Opthea vs. Playtech plc | Opthea vs. Modine Manufacturing |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Transaction History View history of all your transactions and understand their impact on performance |