Correlation Between Regeneron Pharmaceuticals and Teleflex Incorporated
Can any of the company-specific risk be diversified away by investing in both Regeneron Pharmaceuticals and Teleflex Incorporated 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 Teleflex Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regeneron Pharmaceuticals and Teleflex Incorporated, you can compare the effects of market volatilities on Regeneron Pharmaceuticals and Teleflex Incorporated 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 Teleflex Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and Teleflex Incorporated.
Diversification Opportunities for Regeneron Pharmaceuticals and Teleflex Incorporated
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Regeneron and Teleflex is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Teleflex Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleflex Incorporated 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 Teleflex Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teleflex Incorporated has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Teleflex Incorporated go up and down completely randomly.
Pair Corralation between Regeneron Pharmaceuticals and Teleflex Incorporated
Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to generate 0.78 times more return on investment than Teleflex Incorporated. However, Regeneron Pharmaceuticals is 1.29 times less risky than Teleflex Incorporated. It trades about 0.01 of its potential returns per unit of risk. Teleflex Incorporated is currently generating about -0.02 per unit of risk. If you would invest 74,248 in Regeneron Pharmaceuticals on September 2, 2024 and sell it today you would earn a total of 774.00 from holding Regeneron Pharmaceuticals or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regeneron Pharmaceuticals vs. Teleflex Incorporated
Performance |
| Timeline |
| Regeneron Pharmaceuticals |
| Teleflex Incorporated |
Regeneron Pharmaceuticals and Teleflex Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regeneron Pharmaceuticals and Teleflex Incorporated
The main advantage of trading using opposite Regeneron Pharmaceuticals and Teleflex Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals position performs unexpectedly, Teleflex Incorporated 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 Teleflex Incorporated will offset losses from the drop in Teleflex Incorporated'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 |
| Teleflex Incorporated vs. Profound Medical Corp | Teleflex Incorporated vs. Si Bone | Teleflex Incorporated vs. Nevro Corp | Teleflex Incorporated vs. Orthopediatrics Corp |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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