Correlation Between Regeneron Pharmaceuticals and Dana
Can any of the company-specific risk be diversified away by investing in both Regeneron Pharmaceuticals and Dana 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 Dana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regeneron Pharmaceuticals and Dana Inc, you can compare the effects of market volatilities on Regeneron Pharmaceuticals and Dana 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 Dana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and Dana.
Diversification Opportunities for Regeneron Pharmaceuticals and Dana
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Regeneron and Dana is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Dana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Inc 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 Dana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Inc has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Dana go up and down completely randomly.
Pair Corralation between Regeneron Pharmaceuticals and Dana
Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to generate 0.48 times more return on investment than Dana. However, Regeneron Pharmaceuticals is 2.1 times less risky than Dana. It trades about 0.02 of its potential returns per unit of risk. Dana Inc is currently generating about -0.02 per unit of risk. If you would invest 72,302 in Regeneron Pharmaceuticals on September 12, 2024 and sell it today you would earn a total of 5,548 from holding Regeneron Pharmaceuticals or generate 7.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regeneron Pharmaceuticals vs. Dana Inc
Performance |
| Timeline |
| Regeneron Pharmaceuticals |
| Dana Inc |
Regeneron Pharmaceuticals and Dana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regeneron Pharmaceuticals and Dana
The main advantage of trading using opposite Regeneron Pharmaceuticals and Dana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals position performs unexpectedly, Dana 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 Dana will offset losses from the drop in Dana'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 |
| Dana vs. Cooper Stnd | Dana vs. Motorcar Parts of | Dana vs. American Axle Manufacturing | Dana vs. Stoneridge |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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