Correlation Between Regeneron Pharmaceuticals and Quanterix Corp
Can any of the company-specific risk be diversified away by investing in both Regeneron Pharmaceuticals and Quanterix Corp 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 Quanterix Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regeneron Pharmaceuticals and Quanterix Corp, you can compare the effects of market volatilities on Regeneron Pharmaceuticals and Quanterix Corp 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 Quanterix Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and Quanterix Corp.
Diversification Opportunities for Regeneron Pharmaceuticals and Quanterix Corp
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Regeneron and Quanterix is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Quanterix Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quanterix Corp 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 Quanterix Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quanterix Corp has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Quanterix Corp go up and down completely randomly.
Pair Corralation between Regeneron Pharmaceuticals and Quanterix Corp
Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to generate 0.48 times more return on investment than Quanterix Corp. However, Regeneron Pharmaceuticals is 2.1 times less risky than Quanterix Corp. It trades about 0.0 of its potential returns per unit of risk. Quanterix Corp is currently generating about -0.11 per unit of risk. If you would invest 70,909 in Regeneron Pharmaceuticals on December 9, 2024 and sell it today you would lose (158.00) from holding Regeneron Pharmaceuticals or give up 0.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regeneron Pharmaceuticals vs. Quanterix Corp
Performance |
| Timeline |
| Regeneron Pharmaceuticals |
| Quanterix Corp |
Regeneron Pharmaceuticals and Quanterix Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regeneron Pharmaceuticals and Quanterix Corp
The main advantage of trading using opposite Regeneron Pharmaceuticals and Quanterix Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals position performs unexpectedly, Quanterix Corp 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 Quanterix Corp will offset losses from the drop in Quanterix Corp's long position.| Regeneron Pharmaceuticals vs. Crispr Therapeutics AG | ||
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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