Correlation Between PACIFIC and Regeneron Pharmaceuticals
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By analyzing existing cross correlation between PACIFIC GAS ELECTRIC and Regeneron Pharmaceuticals, you can compare the effects of market volatilities on PACIFIC 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 PACIFIC with a short position of Regeneron Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of PACIFIC and Regeneron Pharmaceuticals.
Diversification Opportunities for PACIFIC and Regeneron Pharmaceuticals
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PACIFIC and Regeneron is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding PACIFIC GAS ELECTRIC and Regeneron Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals and PACIFIC 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 PACIFIC GAS ELECTRIC 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 PACIFIC i.e., PACIFIC and Regeneron Pharmaceuticals go up and down completely randomly.
Pair Corralation between PACIFIC and Regeneron Pharmaceuticals
Assuming the 90 days trading horizon PACIFIC GAS ELECTRIC is expected to generate 0.87 times more return on investment than Regeneron Pharmaceuticals. However, PACIFIC GAS ELECTRIC is 1.14 times less risky than Regeneron Pharmaceuticals. It trades about -0.06 of its potential returns per unit of risk. Regeneron Pharmaceuticals is currently generating about -0.25 per unit of risk. If you would invest 8,665 in PACIFIC GAS ELECTRIC on September 13, 2024 and sell it today you would lose (155.00) from holding PACIFIC GAS ELECTRIC or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
PACIFIC GAS ELECTRIC vs. Regeneron Pharmaceuticals
Performance |
| Timeline |
| PACIFIC GAS ELECTRIC |
| Regeneron Pharmaceuticals |
PACIFIC and Regeneron Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PACIFIC and Regeneron Pharmaceuticals
The main advantage of trading using opposite PACIFIC and Regeneron Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PACIFIC 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.| PACIFIC vs. Southwest Airlines | PACIFIC vs. American Airlines Group | PACIFIC vs. Toro Co | PACIFIC vs. Steven Madden |
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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