Correlation Between Regeneron Pharmaceuticals and Caribou Biosciences
Can any of the company-specific risk be diversified away by investing in both Regeneron Pharmaceuticals and Caribou Biosciences 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 Caribou Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regeneron Pharmaceuticals and Caribou Biosciences, you can compare the effects of market volatilities on Regeneron Pharmaceuticals and Caribou Biosciences 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 Caribou Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and Caribou Biosciences.
Diversification Opportunities for Regeneron Pharmaceuticals and Caribou Biosciences
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Regeneron and Caribou is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Caribou Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caribou Biosciences 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 Caribou Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caribou Biosciences has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Caribou Biosciences go up and down completely randomly.
Pair Corralation between Regeneron Pharmaceuticals and Caribou Biosciences
Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to under-perform the Caribou Biosciences. But the stock apears to be less risky and, when comparing its historical volatility, Regeneron Pharmaceuticals is 2.73 times less risky than Caribou Biosciences. The stock trades about -0.39 of its potential returns per unit of risk. The Caribou Biosciences is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 197.00 in Caribou Biosciences on August 31, 2024 and sell it today you would earn a total of 23.00 from holding Caribou Biosciences or generate 11.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regeneron Pharmaceuticals vs. Caribou Biosciences
Performance |
| Timeline |
| Regeneron Pharmaceuticals |
| Caribou Biosciences |
Regeneron Pharmaceuticals and Caribou Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regeneron Pharmaceuticals and Caribou Biosciences
The main advantage of trading using opposite Regeneron Pharmaceuticals and Caribou Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals position performs unexpectedly, Caribou Biosciences 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 Caribou Biosciences will offset losses from the drop in Caribou Biosciences' long position.| Regeneron Pharmaceuticals vs. Crispr Therapeutics AG | Regeneron Pharmaceuticals vs. Novo Nordisk AS | Regeneron Pharmaceuticals vs. Sarepta Therapeutics | Regeneron Pharmaceuticals vs. Intellia Therapeutics |
| Caribou Biosciences vs. Intellia Therapeutics | Caribou Biosciences vs. Editas Medicine | Caribou Biosciences vs. Crispr Therapeutics AG | Caribou Biosciences vs. Verve Therapeutics |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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