Correlation Between Sellas Life and Regeneron Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Sellas Life 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 Sellas Life and Regeneron Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sellas Life Sciences and Regeneron Pharmaceuticals, you can compare the effects of market volatilities on Sellas Life 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 Sellas Life with a short position of Regeneron Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sellas Life and Regeneron Pharmaceuticals.
Diversification Opportunities for Sellas Life and Regeneron Pharmaceuticals
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sellas and Regeneron is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Sellas Life Sciences and Regeneron Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals and Sellas Life 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 Sellas Life Sciences 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 Sellas Life i.e., Sellas Life and Regeneron Pharmaceuticals go up and down completely randomly.
Pair Corralation between Sellas Life and Regeneron Pharmaceuticals
Considering the 90-day investment horizon Sellas Life Sciences is expected to generate 5.1 times more return on investment than Regeneron Pharmaceuticals. However, Sellas Life is 5.1 times more volatile than Regeneron Pharmaceuticals. It trades about 0.13 of its potential returns per unit of risk. Regeneron Pharmaceuticals is currently generating about -0.14 per unit of risk. If you would invest 118.00 in Sellas Life Sciences on November 3, 2024 and sell it today you would earn a total of 44.00 from holding Sellas Life Sciences or generate 37.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sellas Life Sciences vs. Regeneron Pharmaceuticals
Performance |
| Timeline |
| Sellas Life Sciences |
| Regeneron Pharmaceuticals |
Sellas Life and Regeneron Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sellas Life and Regeneron Pharmaceuticals
The main advantage of trading using opposite Sellas Life and Regeneron Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sellas Life 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.| Sellas Life vs. NLS Pharmaceutics AG | Sellas Life vs. Mereo BioPharma Group | Sellas Life vs. Day One Biopharmaceuticals | Sellas Life vs. Reviva Pharmaceuticals Holdings |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |