Correlation Between CINCINNATI and Regeneron Pharmaceuticals
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By analyzing existing cross correlation between CINCINNATI FINL P and Regeneron Pharmaceuticals, you can compare the effects of market volatilities on CINCINNATI 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 CINCINNATI with a short position of Regeneron Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of CINCINNATI and Regeneron Pharmaceuticals.
Diversification Opportunities for CINCINNATI and Regeneron Pharmaceuticals
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CINCINNATI and Regeneron is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding CINCINNATI FINL P and Regeneron Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals and CINCINNATI 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 CINCINNATI FINL P 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 CINCINNATI i.e., CINCINNATI and Regeneron Pharmaceuticals go up and down completely randomly.
Pair Corralation between CINCINNATI and Regeneron Pharmaceuticals
Assuming the 90 days trading horizon CINCINNATI FINL P is expected to generate 0.14 times more return on investment than Regeneron Pharmaceuticals. However, CINCINNATI FINL P is 7.16 times less risky than Regeneron Pharmaceuticals. It trades about 0.07 of its potential returns per unit of risk. Regeneron Pharmaceuticals is currently generating about -0.02 per unit of risk. If you would invest 10,636 in CINCINNATI FINL P on December 2, 2024 and sell it today you would earn a total of 70.00 from holding CINCINNATI FINL P or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.0% |
| Values | Daily Returns |
CINCINNATI FINL P vs. Regeneron Pharmaceuticals
Performance |
| Timeline |
| CINCINNATI FINL P |
| Regeneron Pharmaceuticals |
CINCINNATI and Regeneron Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CINCINNATI and Regeneron Pharmaceuticals
The main advantage of trading using opposite CINCINNATI and Regeneron Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CINCINNATI 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.| CINCINNATI vs. Corning Incorporated | CINCINNATI vs. Qualys Inc | CINCINNATI vs. NetSol Technologies | CINCINNATI vs. Energy and Environmental |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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