Correlation Between Regeneron Pharmaceuticals and Moderna
Can any of the company-specific risk be diversified away by investing in both Regeneron Pharmaceuticals and Moderna 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 Moderna into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regeneron Pharmaceuticals and Moderna, you can compare the effects of market volatilities on Regeneron Pharmaceuticals and Moderna 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 Moderna. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and Moderna.
Diversification Opportunities for Regeneron Pharmaceuticals and Moderna
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Regeneron and Moderna is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Moderna in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moderna 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 Moderna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moderna has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Moderna go up and down completely randomly.
Pair Corralation between Regeneron Pharmaceuticals and Moderna
Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to generate 0.37 times more return on investment than Moderna. However, Regeneron Pharmaceuticals is 2.7 times less risky than Moderna. It trades about -0.1 of its potential returns per unit of risk. Moderna is currently generating about -0.09 per unit of risk. If you would invest 96,609 in Regeneron Pharmaceuticals on August 27, 2024 and sell it today you would lose (22,809) from holding Regeneron Pharmaceuticals or give up 23.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regeneron Pharmaceuticals vs. Moderna
Performance |
| Timeline |
| Regeneron Pharmaceuticals |
| Moderna |
Regeneron Pharmaceuticals and Moderna Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regeneron Pharmaceuticals and Moderna
The main advantage of trading using opposite Regeneron Pharmaceuticals and Moderna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals position performs unexpectedly, Moderna 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 Moderna will offset losses from the drop in Moderna'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 |
| Moderna vs. CureVac NV | Moderna vs. Novavax | Moderna vs. Ocean Biomedical | Moderna vs. Enveric Biosciences |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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