Correlation Between Regeneron Pharmaceuticals and Genscript Biotech
Can any of the company-specific risk be diversified away by investing in both Regeneron Pharmaceuticals and Genscript Biotech 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 Genscript Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regeneron Pharmaceuticals and Genscript Biotech, you can compare the effects of market volatilities on Regeneron Pharmaceuticals and Genscript Biotech 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 Genscript Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and Genscript Biotech.
Diversification Opportunities for Regeneron Pharmaceuticals and Genscript Biotech
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Regeneron and Genscript is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Genscript Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genscript Biotech 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 Genscript Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genscript Biotech has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Genscript Biotech go up and down completely randomly.
Pair Corralation between Regeneron Pharmaceuticals and Genscript Biotech
Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to under-perform the Genscript Biotech. But the stock apears to be less risky and, when comparing its historical volatility, Regeneron Pharmaceuticals is 1.7 times less risky than Genscript Biotech. The stock trades about -0.23 of its potential returns per unit of risk. The Genscript Biotech is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 140.00 in Genscript Biotech on October 26, 2024 and sell it today you would lose (4.00) from holding Genscript Biotech or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.16% |
| Values | Daily Returns |
Regeneron Pharmaceuticals vs. Genscript Biotech
Performance |
| Timeline |
| Regeneron Pharmaceuticals |
| Genscript Biotech |
Regeneron Pharmaceuticals and Genscript Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regeneron Pharmaceuticals and Genscript Biotech
The main advantage of trading using opposite Regeneron Pharmaceuticals and Genscript Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals position performs unexpectedly, Genscript Biotech 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 Genscript Biotech will offset losses from the drop in Genscript Biotech'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 |
| Genscript Biotech vs. Telix Pharmaceuticals Limited | Genscript Biotech vs. Keros Therapeutics | Genscript Biotech vs. Zentalis Pharmaceuticals Llc | Genscript Biotech vs. Innovent Biologics |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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