Correlation Between Regeneron Pharmaceuticals and PHINIA
Can any of the company-specific risk be diversified away by investing in both Regeneron Pharmaceuticals and PHINIA 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 PHINIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regeneron Pharmaceuticals and PHINIA Inc, you can compare the effects of market volatilities on Regeneron Pharmaceuticals and PHINIA 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 PHINIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and PHINIA.
Diversification Opportunities for Regeneron Pharmaceuticals and PHINIA
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Regeneron and PHINIA is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and PHINIA Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHINIA 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 PHINIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHINIA Inc has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and PHINIA go up and down completely randomly.
Pair Corralation between Regeneron Pharmaceuticals and PHINIA
Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to under-perform the PHINIA. But the stock apears to be less risky and, when comparing its historical volatility, Regeneron Pharmaceuticals is 1.23 times less risky than PHINIA. The stock trades about -0.48 of its potential returns per unit of risk. The PHINIA Inc is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 4,589 in PHINIA Inc on August 27, 2024 and sell it today you would earn a total of 917.00 from holding PHINIA Inc or generate 19.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regeneron Pharmaceuticals vs. PHINIA Inc
Performance |
| Timeline |
| Regeneron Pharmaceuticals |
| PHINIA Inc |
Regeneron Pharmaceuticals and PHINIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regeneron Pharmaceuticals and PHINIA
The main advantage of trading using opposite Regeneron Pharmaceuticals and PHINIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals position performs unexpectedly, PHINIA 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 PHINIA will offset losses from the drop in PHINIA'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 |
| PHINIA vs. Regeneron Pharmaceuticals | PHINIA vs. Inter Parfums | PHINIA vs. Church Dwight | PHINIA vs. Mannatech Incorporated |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Correlations Find global opportunities by holding instruments from different markets |