Correlation Between SAB Biotherapeutics and Regeneron Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both SAB Biotherapeutics 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 SAB Biotherapeutics and Regeneron Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAB Biotherapeutics and Regeneron Pharmaceuticals, you can compare the effects of market volatilities on SAB Biotherapeutics 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 SAB Biotherapeutics with a short position of Regeneron Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAB Biotherapeutics and Regeneron Pharmaceuticals.
Diversification Opportunities for SAB Biotherapeutics and Regeneron Pharmaceuticals
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SAB and Regeneron is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding SAB Biotherapeutics and Regeneron Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals and SAB Biotherapeutics 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 SAB Biotherapeutics 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 SAB Biotherapeutics i.e., SAB Biotherapeutics and Regeneron Pharmaceuticals go up and down completely randomly.
Pair Corralation between SAB Biotherapeutics and Regeneron Pharmaceuticals
Assuming the 90 days horizon SAB Biotherapeutics is expected to generate 111.62 times more return on investment than Regeneron Pharmaceuticals. However, SAB Biotherapeutics is 111.62 times more volatile than Regeneron Pharmaceuticals. It trades about 0.15 of its potential returns per unit of risk. Regeneron Pharmaceuticals is currently generating about -0.03 per unit of risk. If you would invest 4.43 in SAB Biotherapeutics on September 4, 2024 and sell it today you would earn a total of 0.74 from holding SAB Biotherapeutics or generate 16.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 73.28% |
| Values | Daily Returns |
SAB Biotherapeutics vs. Regeneron Pharmaceuticals
Performance |
| Timeline |
| SAB Biotherapeutics |
| Regeneron Pharmaceuticals |
SAB Biotherapeutics and Regeneron Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAB Biotherapeutics and Regeneron Pharmaceuticals
The main advantage of trading using opposite SAB Biotherapeutics and Regeneron Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAB Biotherapeutics 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.| SAB Biotherapeutics vs. SAB Biotherapeutics | SAB Biotherapeutics vs. Jasper Therapeutics | SAB Biotherapeutics vs. NRx Pharmaceuticals | SAB Biotherapeutics vs. Surrozen Warrant |
| Regeneron Pharmaceuticals vs. Crispr Therapeutics AG | Regeneron Pharmaceuticals vs. Novo Nordisk AS | Regeneron Pharmaceuticals vs. Sarepta Therapeutics | Regeneron Pharmaceuticals vs. Intellia 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |