Correlation Between Regeneron Pharmaceuticals and Gildan Activewear
Can any of the company-specific risk be diversified away by investing in both Regeneron Pharmaceuticals and Gildan Activewear 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 Gildan Activewear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regeneron Pharmaceuticals and Gildan Activewear, you can compare the effects of market volatilities on Regeneron Pharmaceuticals and Gildan Activewear 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 Gildan Activewear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and Gildan Activewear.
Diversification Opportunities for Regeneron Pharmaceuticals and Gildan Activewear
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Regeneron and Gildan is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Gildan Activewear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gildan Activewear 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 Gildan Activewear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gildan Activewear has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Gildan Activewear go up and down completely randomly.
Pair Corralation between Regeneron Pharmaceuticals and Gildan Activewear
Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to under-perform the Gildan Activewear. In addition to that, Regeneron Pharmaceuticals is 1.9 times more volatile than Gildan Activewear. It trades about -0.03 of its total potential returns per unit of risk. Gildan Activewear is currently generating about 0.44 per unit of volatility. If you would invest 4,650 in Gildan Activewear on November 8, 2024 and sell it today you would earn a total of 543.00 from holding Gildan Activewear or generate 11.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Regeneron Pharmaceuticals vs. Gildan Activewear
Performance |
| Timeline |
| Regeneron Pharmaceuticals |
| Gildan Activewear |
Regeneron Pharmaceuticals and Gildan Activewear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regeneron Pharmaceuticals and Gildan Activewear
The main advantage of trading using opposite Regeneron Pharmaceuticals and Gildan Activewear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals position performs unexpectedly, Gildan Activewear 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 Gildan Activewear will offset losses from the drop in Gildan Activewear's long position.| Regeneron Pharmaceuticals vs. CytomX Therapeutics | Regeneron Pharmaceuticals vs. Instil Bio | Regeneron Pharmaceuticals vs. Spero Therapeutics | Regeneron Pharmaceuticals vs. Assembly Biosciences |
| Gildan Activewear vs. Vince Holding Corp | Gildan Activewear vs. Ermenegildo Zegna NV | Gildan Activewear vs. Columbia Sportswear | Gildan Activewear vs. G III Apparel Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges |