Correlation Between Regeneron Pharmaceuticals and Jabil Circuit
Can any of the company-specific risk be diversified away by investing in both Regeneron Pharmaceuticals and Jabil Circuit 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 Jabil Circuit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regeneron Pharmaceuticals and Jabil Circuit, you can compare the effects of market volatilities on Regeneron Pharmaceuticals and Jabil Circuit 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 Jabil Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and Jabil Circuit.
Diversification Opportunities for Regeneron Pharmaceuticals and Jabil Circuit
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Regeneron and Jabil is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Jabil Circuit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jabil Circuit 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 Jabil Circuit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jabil Circuit has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Jabil Circuit go up and down completely randomly.
Pair Corralation between Regeneron Pharmaceuticals and Jabil Circuit
Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to under-perform the Jabil Circuit. But the stock apears to be less risky and, when comparing its historical volatility, Regeneron Pharmaceuticals is 1.62 times less risky than Jabil Circuit. The stock trades about -0.01 of its potential returns per unit of risk. The Jabil Circuit is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 7,951 in Jabil Circuit on October 23, 2024 and sell it today you would earn a total of 8,788 from holding Jabil Circuit or generate 110.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regeneron Pharmaceuticals vs. Jabil Circuit
Performance |
| Timeline |
| Regeneron Pharmaceuticals |
| Jabil Circuit |
Regeneron Pharmaceuticals and Jabil Circuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regeneron Pharmaceuticals and Jabil Circuit
The main advantage of trading using opposite Regeneron Pharmaceuticals and Jabil Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals position performs unexpectedly, Jabil Circuit 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 Jabil Circuit will offset losses from the drop in Jabil Circuit'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 |
| Jabil Circuit vs. Sanmina | Jabil Circuit vs. Celestica | Jabil Circuit vs. Plexus Corp | Jabil Circuit vs. Fabrinet |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |