Correlation Between Regeneron Pharmaceuticals and Viking Therapeutics
Can any of the company-specific risk be diversified away by investing in both Regeneron Pharmaceuticals and Viking Therapeutics 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 Viking Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regeneron Pharmaceuticals and Viking Therapeutics, you can compare the effects of market volatilities on Regeneron Pharmaceuticals and Viking Therapeutics 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 Viking Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and Viking Therapeutics.
Diversification Opportunities for Regeneron Pharmaceuticals and Viking Therapeutics
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Regeneron and Viking is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Viking Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viking Therapeutics 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 Viking Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viking Therapeutics has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Viking Therapeutics go up and down completely randomly.
Pair Corralation between Regeneron Pharmaceuticals and Viking Therapeutics
Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to generate 124.0 times less return on investment than Viking Therapeutics. But when comparing it to its historical volatility, Regeneron Pharmaceuticals is 5.59 times less risky than Viking Therapeutics. It trades about 0.0 of its potential returns per unit of risk. Viking Therapeutics is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,103 in Viking Therapeutics on November 9, 2024 and sell it today you would earn a total of 2,043 from holding Viking Therapeutics or generate 185.22% 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. Viking Therapeutics
Performance |
| Timeline |
| Regeneron Pharmaceuticals |
| Viking Therapeutics |
Regeneron Pharmaceuticals and Viking Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regeneron Pharmaceuticals and Viking Therapeutics
The main advantage of trading using opposite Regeneron Pharmaceuticals and Viking Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals position performs unexpectedly, Viking Therapeutics 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 Viking Therapeutics will offset losses from the drop in Viking Therapeutics' long position.| Regeneron Pharmaceuticals vs. Crispr Therapeutics AG | Regeneron Pharmaceuticals vs. Novo Nordisk AS | Regeneron Pharmaceuticals vs. Sarepta Therapeutics | Regeneron Pharmaceuticals vs. Intellia Therapeutics |
| Viking Therapeutics vs. Terns Pharmaceuticals | Viking Therapeutics vs. Akero Therapeutics | Viking Therapeutics vs. Madrigal Pharmaceuticals | Viking Therapeutics vs. Sarepta 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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