Correlation Between Zura Bio and Regeneron Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Zura Bio 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 Zura Bio and Regeneron Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zura Bio Limited and Regeneron Pharmaceuticals, you can compare the effects of market volatilities on Zura Bio 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 Zura Bio with a short position of Regeneron Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zura Bio and Regeneron Pharmaceuticals.
Diversification Opportunities for Zura Bio and Regeneron Pharmaceuticals
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zura and Regeneron is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Zura Bio Limited and Regeneron Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals and Zura Bio 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 Zura Bio Limited 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 Zura Bio i.e., Zura Bio and Regeneron Pharmaceuticals go up and down completely randomly.
Pair Corralation between Zura Bio and Regeneron Pharmaceuticals
Given the investment horizon of 90 days Zura Bio Limited is expected to under-perform the Regeneron Pharmaceuticals. In addition to that, Zura Bio is 2.53 times more volatile than Regeneron Pharmaceuticals. It trades about -0.35 of its total potential returns per unit of risk. Regeneron Pharmaceuticals is currently generating about -0.48 per unit of volatility. If you would invest 94,139 in Regeneron Pharmaceuticals on August 24, 2024 and sell it today you would lose (19,689) from holding Regeneron Pharmaceuticals or give up 20.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zura Bio Limited vs. Regeneron Pharmaceuticals
Performance |
| Timeline |
| Zura Bio Limited |
| Regeneron Pharmaceuticals |
Zura Bio and Regeneron Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zura Bio and Regeneron Pharmaceuticals
The main advantage of trading using opposite Zura Bio and Regeneron Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zura Bio 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.| Zura Bio vs. Volaris | Zura Bio vs. Western Acquisition Ventures | Zura Bio vs. SFL Corporation | Zura Bio vs. Mesa Air Group |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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