Correlation Between Regeneron Pharmaceuticals and Highway Holdings
Can any of the company-specific risk be diversified away by investing in both Regeneron Pharmaceuticals and Highway 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 Highway 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 Highway Holdings Limited, you can compare the effects of market volatilities on Regeneron Pharmaceuticals and Highway 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 Highway Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and Highway Holdings.
Diversification Opportunities for Regeneron Pharmaceuticals and Highway Holdings
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Regeneron and Highway is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Highway Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highway 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 Highway Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highway Holdings has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Highway Holdings go up and down completely randomly.
Pair Corralation between Regeneron Pharmaceuticals and Highway Holdings
Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to under-perform the Highway Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Regeneron Pharmaceuticals is 1.48 times less risky than Highway Holdings. The stock trades about -0.47 of its potential returns per unit of risk. The Highway Holdings Limited is currently generating about -0.26 of returns per unit of risk over similar time horizon. If you would invest 236.00 in Highway Holdings Limited on August 24, 2024 and sell it today you would lose (43.00) from holding Highway Holdings Limited or give up 18.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regeneron Pharmaceuticals vs. Highway Holdings Limited
Performance |
| Timeline |
| Regeneron Pharmaceuticals |
| Highway Holdings |
Regeneron Pharmaceuticals and Highway Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regeneron Pharmaceuticals and Highway Holdings
The main advantage of trading using opposite Regeneron Pharmaceuticals and Highway Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals position performs unexpectedly, Highway 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 Highway Holdings will offset losses from the drop in Highway 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 |
| Highway Holdings vs. Deswell Industries | Highway Holdings vs. Euro Tech Holdings | Highway Holdings vs. China Natural Resources | Highway Holdings vs. Arts Way Manufacturing Co |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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