Correlation Between Regeneron Pharmaceuticals and PACIFIC
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By analyzing existing cross correlation between Regeneron Pharmaceuticals and PACIFIC GAS ELECTRIC, you can compare the effects of market volatilities on Regeneron Pharmaceuticals and PACIFIC 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 PACIFIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and PACIFIC.
Diversification Opportunities for Regeneron Pharmaceuticals and PACIFIC
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Regeneron and PACIFIC is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and PACIFIC GAS ELECTRIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC GAS ELECTRIC 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 PACIFIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC GAS ELECTRIC has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and PACIFIC go up and down completely randomly.
Pair Corralation between Regeneron Pharmaceuticals and PACIFIC
Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to under-perform the PACIFIC. In addition to that, Regeneron Pharmaceuticals is 1.14 times more volatile than PACIFIC GAS ELECTRIC. It trades about -0.25 of its total potential returns per unit of risk. PACIFIC GAS ELECTRIC is currently generating about -0.06 per unit of volatility. If you would invest 8,665 in PACIFIC GAS ELECTRIC on September 13, 2024 and sell it today you would lose (155.00) from holding PACIFIC GAS ELECTRIC or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Regeneron Pharmaceuticals vs. PACIFIC GAS ELECTRIC
Performance |
| Timeline |
| Regeneron Pharmaceuticals |
| PACIFIC GAS ELECTRIC |
Regeneron Pharmaceuticals and PACIFIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regeneron Pharmaceuticals and PACIFIC
The main advantage of trading using opposite Regeneron Pharmaceuticals and PACIFIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals position performs unexpectedly, PACIFIC 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 PACIFIC will offset losses from the drop in PACIFIC's long position.The idea behind Regeneron Pharmaceuticals and PACIFIC GAS ELECTRIC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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