Correlation Between Regeneron Pharmaceuticals and Lazydays Holdings
Can any of the company-specific risk be diversified away by investing in both Regeneron Pharmaceuticals and Lazydays Holdings 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 Lazydays Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regeneron Pharmaceuticals and Lazydays Holdings, you can compare the effects of market volatilities on Regeneron Pharmaceuticals and Lazydays Holdings 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 Lazydays Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and Lazydays Holdings.
Diversification Opportunities for Regeneron Pharmaceuticals and Lazydays Holdings
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Regeneron and Lazydays is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Lazydays Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazydays Holdings 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 Lazydays Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazydays Holdings has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Lazydays Holdings go up and down completely randomly.
Pair Corralation between Regeneron Pharmaceuticals and Lazydays Holdings
Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to generate 0.26 times more return on investment than Lazydays Holdings. However, Regeneron Pharmaceuticals is 3.89 times less risky than Lazydays Holdings. It trades about -0.03 of its potential returns per unit of risk. Lazydays Holdings is currently generating about -0.13 per unit of risk. If you would invest 84,918 in Regeneron Pharmaceuticals on September 2, 2024 and sell it today you would lose (9,896) from holding Regeneron Pharmaceuticals or give up 11.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regeneron Pharmaceuticals vs. Lazydays Holdings
Performance |
| Timeline |
| Regeneron Pharmaceuticals |
| Lazydays Holdings |
Regeneron Pharmaceuticals and Lazydays Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regeneron Pharmaceuticals and Lazydays Holdings
The main advantage of trading using opposite Regeneron Pharmaceuticals and Lazydays Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals position performs unexpectedly, Lazydays Holdings 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 Lazydays Holdings will offset losses from the drop in Lazydays Holdings' long position.| Regeneron Pharmaceuticals vs. Crispr Therapeutics AG | Regeneron Pharmaceuticals vs. Novo Nordisk AS | Regeneron Pharmaceuticals vs. Sarepta Therapeutics | Regeneron Pharmaceuticals vs. Intellia Therapeutics |
| Lazydays Holdings vs. Perseus Mining Limited | Lazydays Holdings vs. RBC Bearings Incorporated | Lazydays Holdings vs. Hurco Companies | Lazydays Holdings vs. Paiute Oil Mining |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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