Correlation Between Regeneron Pharmaceuticals and Hafnia
Can any of the company-specific risk be diversified away by investing in both Regeneron Pharmaceuticals and Hafnia 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 Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regeneron Pharmaceuticals and Hafnia Limited, you can compare the effects of market volatilities on Regeneron Pharmaceuticals and Hafnia 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 Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and Hafnia.
Diversification Opportunities for Regeneron Pharmaceuticals and Hafnia
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Regeneron and Hafnia is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited 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 Hafnia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hafnia Limited has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Hafnia go up and down completely randomly.
Pair Corralation between Regeneron Pharmaceuticals and Hafnia
Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to under-perform the Hafnia. But the stock apears to be less risky and, when comparing its historical volatility, Regeneron Pharmaceuticals is 1.31 times less risky than Hafnia. The stock trades about -0.39 of its potential returns per unit of risk. The Hafnia Limited is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest 736.00 in Hafnia Limited on September 3, 2024 and sell it today you would lose (167.00) from holding Hafnia Limited or give up 22.69% 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. Hafnia Limited
Performance |
| Timeline |
| Regeneron Pharmaceuticals |
| Hafnia Limited |
Regeneron Pharmaceuticals and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regeneron Pharmaceuticals and Hafnia
The main advantage of trading using opposite Regeneron Pharmaceuticals and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals position performs unexpectedly, Hafnia 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 Hafnia will offset losses from the drop in Hafnia's long position.| Regeneron Pharmaceuticals vs. DiaMedica Therapeutics | Regeneron Pharmaceuticals vs. Lyra Therapeutics | Regeneron Pharmaceuticals vs. Centessa Pharmaceuticals PLC |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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