Pair Correlation Between Cadus and Regeneron Pharmaceuticals

This module allows you to analyze existing cross correlation between Cadus Corporation and Regeneron Pharmaceuticals Inc. You can compare the effects of market volatilities on Cadus 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 Cadus with a short position of Regeneron Pharmaceuticals. See also your portfolio center. Please also check ongoing floating volatility patterns of Cadus and Regeneron Pharmaceuticals.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Cadus Corp.  vs   Regeneron Pharmaceuticals Inc
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Cadus Corporation is expected to generate 3.94 times more return on investment than Regeneron Pharmaceuticals. However, Cadus is 3.94 times more volatile than Regeneron Pharmaceuticals Inc. It trades about 0.25 of its potential returns per unit of risk. Regeneron Pharmaceuticals Inc is currently generating about -0.05 per unit of risk. If you would invest  95  in Cadus Corporation on September 20, 2017 and sell it today you would earn a total of  30  from holding Cadus Corporation or generate 31.58% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Cadus and Regeneron Pharmaceuticals
0.29

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Weak
Accuracy95.65%
ValuesDaily Returns

Diversification

Modest diversification

Overlapping area represents the amount of risk that can be diversified away by holding Cadus Corp. and Regeneron Pharmaceuticals Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals and Cadus 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 Cadus Corporation 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 Cadus i.e. Cadus and Regeneron Pharmaceuticals go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Cadus

  
16 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Cadus Corporation are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days.

Regeneron Pharmaceuticals

  
0 

Risk-Adjusted Performance

Over the last 30 days Regeneron Pharmaceuticals Inc has generated negative risk-adjusted returns adding no value to investors with long positions.