Correlation Between Regeneron Pharmaceuticals and PACCAR
Can any of the company-specific risk be diversified away by investing in both Regeneron Pharmaceuticals and PACCAR 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 PACCAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regeneron Pharmaceuticals and PACCAR Inc, you can compare the effects of market volatilities on Regeneron Pharmaceuticals and PACCAR 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 PACCAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and PACCAR.
Diversification Opportunities for Regeneron Pharmaceuticals and PACCAR
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Regeneron and PACCAR is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and PACCAR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACCAR 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 PACCAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACCAR Inc has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and PACCAR go up and down completely randomly.
Pair Corralation between Regeneron Pharmaceuticals and PACCAR
Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to generate 3.39 times less return on investment than PACCAR. But when comparing it to its historical volatility, Regeneron Pharmaceuticals is 1.17 times less risky than PACCAR. It trades about 0.02 of its potential returns per unit of risk. PACCAR Inc is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,445 in PACCAR Inc on September 12, 2024 and sell it today you would earn a total of 3,092 from holding PACCAR Inc or generate 36.61% 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. PACCAR Inc
Performance |
| Timeline |
| Regeneron Pharmaceuticals |
| PACCAR Inc |
Regeneron Pharmaceuticals and PACCAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regeneron Pharmaceuticals and PACCAR
The main advantage of trading using opposite Regeneron Pharmaceuticals and PACCAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals position performs unexpectedly, PACCAR 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 PACCAR will offset losses from the drop in PACCAR'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 |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |