Correlation Between Regeneron Pharmaceuticals and LENSAR
Can any of the company-specific risk be diversified away by investing in both Regeneron Pharmaceuticals and LENSAR 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 LENSAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regeneron Pharmaceuticals and LENSAR Inc, you can compare the effects of market volatilities on Regeneron Pharmaceuticals and LENSAR 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 LENSAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and LENSAR.
Diversification Opportunities for Regeneron Pharmaceuticals and LENSAR
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Regeneron and LENSAR is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and LENSAR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LENSAR Inc 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 LENSAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LENSAR Inc has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and LENSAR go up and down completely randomly.
Pair Corralation between Regeneron Pharmaceuticals and LENSAR
Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to under-perform the LENSAR. But the stock apears to be less risky and, when comparing its historical volatility, Regeneron Pharmaceuticals is 3.97 times less risky than LENSAR. The stock trades about -0.02 of its potential returns per unit of risk. The LENSAR Inc is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 226.00 in LENSAR Inc on September 3, 2024 and sell it today you would earn a total of 529.00 from holding LENSAR Inc or generate 234.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regeneron Pharmaceuticals vs. LENSAR Inc
Performance |
| Timeline |
| Regeneron Pharmaceuticals |
| LENSAR Inc |
Regeneron Pharmaceuticals and LENSAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regeneron Pharmaceuticals and LENSAR
The main advantage of trading using opposite Regeneron Pharmaceuticals and LENSAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals position performs unexpectedly, LENSAR 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 LENSAR will offset losses from the drop in LENSAR's long position.| Regeneron Pharmaceuticals vs. DiaMedica Therapeutics | Regeneron Pharmaceuticals vs. Lyra Therapeutics | Regeneron Pharmaceuticals vs. Centessa Pharmaceuticals PLC |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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