Correlation Between Regeneron Pharmaceuticals and Intchains Group
Can any of the company-specific risk be diversified away by investing in both Regeneron Pharmaceuticals and Intchains Group 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 Intchains Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regeneron Pharmaceuticals and Intchains Group Limited, you can compare the effects of market volatilities on Regeneron Pharmaceuticals and Intchains Group 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 Intchains Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and Intchains Group.
Diversification Opportunities for Regeneron Pharmaceuticals and Intchains Group
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Regeneron and Intchains is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Intchains Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intchains Group 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 Intchains Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intchains Group has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Intchains Group go up and down completely randomly.
Pair Corralation between Regeneron Pharmaceuticals and Intchains Group
Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to generate 1.96 times less return on investment than Intchains Group. But when comparing it to its historical volatility, Regeneron Pharmaceuticals is 3.41 times less risky than Intchains Group. It trades about 0.01 of its potential returns per unit of risk. Intchains Group Limited is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 800.00 in Intchains Group Limited on September 14, 2024 and sell it today you would lose (280.00) from holding Intchains Group Limited or give up 35.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 89.09% |
| Values | Daily Returns |
Regeneron Pharmaceuticals vs. Intchains Group Limited
Performance |
| Timeline |
| Regeneron Pharmaceuticals |
| Intchains Group |
Regeneron Pharmaceuticals and Intchains Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regeneron Pharmaceuticals and Intchains Group
The main advantage of trading using opposite Regeneron Pharmaceuticals and Intchains Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals position performs unexpectedly, Intchains Group 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 Intchains Group will offset losses from the drop in Intchains Group'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 |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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