Correlation Between Regeneron Pharmaceuticals and Tykhe Corp
Can any of the company-specific risk be diversified away by investing in both Regeneron Pharmaceuticals and Tykhe Corp 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 Tykhe Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regeneron Pharmaceuticals and Tykhe Corp, you can compare the effects of market volatilities on Regeneron Pharmaceuticals and Tykhe Corp 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 Tykhe Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and Tykhe Corp.
Diversification Opportunities for Regeneron Pharmaceuticals and Tykhe Corp
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Regeneron and Tykhe is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Tykhe Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tykhe Corp 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 Tykhe Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tykhe Corp has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Tykhe Corp go up and down completely randomly.
Pair Corralation between Regeneron Pharmaceuticals and Tykhe Corp
Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to under-perform the Tykhe Corp. But the stock apears to be less risky and, when comparing its historical volatility, Regeneron Pharmaceuticals is 6.69 times less risky than Tykhe Corp. The stock trades about -0.43 of its potential returns per unit of risk. The Tykhe Corp is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 0.45 in Tykhe Corp on September 2, 2024 and sell it today you would lose (0.06) from holding Tykhe Corp or give up 13.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regeneron Pharmaceuticals vs. Tykhe Corp
Performance |
| Timeline |
| Regeneron Pharmaceuticals |
| Tykhe Corp |
Regeneron Pharmaceuticals and Tykhe Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regeneron Pharmaceuticals and Tykhe Corp
The main advantage of trading using opposite Regeneron Pharmaceuticals and Tykhe Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals position performs unexpectedly, Tykhe Corp 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 Tykhe Corp will offset losses from the drop in Tykhe Corp'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 |
| Tykhe Corp vs. Rigel Pharmaceuticals | Tykhe Corp vs. Geron | Tykhe Corp vs. Verastem | Tykhe Corp vs. Immutep Ltd ADR |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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