Correlation Between Vera Bradley and Regeneron Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Vera Bradley 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 Vera Bradley and Regeneron Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vera Bradley and Regeneron Pharmaceuticals, you can compare the effects of market volatilities on Vera Bradley 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 Vera Bradley with a short position of Regeneron Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vera Bradley and Regeneron Pharmaceuticals.
Diversification Opportunities for Vera Bradley and Regeneron Pharmaceuticals
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vera and Regeneron is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Vera Bradley and Regeneron Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals and Vera Bradley 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 Vera Bradley 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 Vera Bradley i.e., Vera Bradley and Regeneron Pharmaceuticals go up and down completely randomly.
Pair Corralation between Vera Bradley and Regeneron Pharmaceuticals
Considering the 90-day investment horizon Vera Bradley is expected to under-perform the Regeneron Pharmaceuticals. In addition to that, Vera Bradley is 1.96 times more volatile than Regeneron Pharmaceuticals. It trades about -0.07 of its total potential returns per unit of risk. Regeneron Pharmaceuticals is currently generating about -0.13 per unit of volatility. If you would invest 98,948 in Regeneron Pharmaceuticals on September 1, 2024 and sell it today you would lose (23,926) from holding Regeneron Pharmaceuticals or give up 24.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vera Bradley vs. Regeneron Pharmaceuticals
Performance |
| Timeline |
| Vera Bradley |
| Regeneron Pharmaceuticals |
Vera Bradley and Regeneron Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vera Bradley and Regeneron Pharmaceuticals
The main advantage of trading using opposite Vera Bradley and Regeneron Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vera Bradley 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.| Vera Bradley vs. Rocky Brands | Vera Bradley vs. Steven Madden | Vera Bradley vs. Wolverine World Wide | Vera Bradley vs. Caleres |
| Regeneron Pharmaceuticals vs. Tff Pharmaceuticals | Regeneron Pharmaceuticals vs. Eliem Therapeutics | Regeneron Pharmaceuticals vs. Inhibrx | Regeneron Pharmaceuticals vs. Enliven 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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