Correlation Between Regeneron Pharmaceuticals and Celgene
Can any of the company-specific risk be diversified away by investing in both Regeneron Pharmaceuticals and Celgene 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 Regeneron Pharmaceuticals and Celgene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regeneron Pharmaceuticals and Celgene, you can compare the effects of market volatilities on Regeneron Pharmaceuticals and Celgene 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 Regeneron Pharmaceuticals with a short position of Celgene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and Celgene.
Diversification Opportunities for Regeneron Pharmaceuticals and Celgene
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Regeneron and Celgene is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Celgene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celgene and Regeneron Pharmaceuticals 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 Regeneron Pharmaceuticals are associated (or correlated) with Celgene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celgene has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Celgene go up and down completely randomly.
Pair Corralation between Regeneron Pharmaceuticals and Celgene
If you would invest (100.00) in Celgene on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Celgene or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Regeneron Pharmaceuticals vs. Celgene
Performance |
| Timeline |
| Regeneron Pharmaceuticals |
| Celgene |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Regeneron Pharmaceuticals and Celgene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regeneron Pharmaceuticals and Celgene
The main advantage of trading using opposite Regeneron Pharmaceuticals and Celgene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals position performs unexpectedly, Celgene 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 Celgene will offset losses from the drop in Celgene's long position.| Regeneron Pharmaceuticals vs. Crispr Therapeutics AG | Regeneron Pharmaceuticals vs. Novo Nordisk AS | Regeneron Pharmaceuticals vs. Sarepta Therapeutics | Regeneron Pharmaceuticals vs. Intellia Therapeutics |
| Celgene vs. Plexus Corp | Celgene vs. Skyworks Solutions | Celgene vs. Analog Devices | Celgene vs. FormFactor |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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