Correlation Between Northstar Clean and Regeneron Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Northstar Clean and Regeneron Pharmaceuticals 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 Northstar Clean and Regeneron Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Northstar Clean Technologies and Regeneron Pharmaceuticals, you can compare the effects of market volatilities on Northstar Clean and Regeneron Pharmaceuticals 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 Northstar Clean with a short position of Regeneron Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northstar Clean and Regeneron Pharmaceuticals.
Diversification Opportunities for Northstar Clean and Regeneron Pharmaceuticals
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Northstar and Regeneron is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Northstar Clean Technologies and Regeneron Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals and Northstar Clean 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 Northstar Clean Technologies are associated (or correlated) with Regeneron Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regeneron Pharmaceuticals has no effect on the direction of Northstar Clean i.e., Northstar Clean and Regeneron Pharmaceuticals go up and down completely randomly.
Pair Corralation between Northstar Clean and Regeneron Pharmaceuticals
Assuming the 90 days horizon Northstar Clean Technologies is expected to generate 2.4 times more return on investment than Regeneron Pharmaceuticals. However, Northstar Clean is 2.4 times more volatile than Regeneron Pharmaceuticals. It trades about 0.17 of its potential returns per unit of risk. Regeneron Pharmaceuticals is currently generating about -0.39 per unit of risk. If you would invest 14.00 in Northstar Clean Technologies on September 3, 2024 and sell it today you would earn a total of 7.00 from holding Northstar Clean Technologies or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northstar Clean Technologies vs. Regeneron Pharmaceuticals
Performance |
| Timeline |
| Northstar Clean Tech |
| Regeneron Pharmaceuticals |
Northstar Clean and Regeneron Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northstar Clean and Regeneron Pharmaceuticals
The main advantage of trading using opposite Northstar Clean and Regeneron Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northstar Clean position performs unexpectedly, Regeneron Pharmaceuticals 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 Regeneron Pharmaceuticals will offset losses from the drop in Regeneron Pharmaceuticals' long position.| Northstar Clean vs. Susglobal Energy Corp | Northstar Clean vs. LanzaTech Global | Northstar Clean vs. Aqua Metals | Northstar Clean vs. LiCycle Holdings Corp |
| Regeneron Pharmaceuticals vs. DiaMedica Therapeutics | Regeneron Pharmaceuticals vs. Lyra Therapeutics | Regeneron Pharmaceuticals vs. Centessa Pharmaceuticals PLC |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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