Correlation Between Lixte Biotech and Regeneron Pharmaceuticals

By analyzing existing cross correlation between Lixte Biotech Hlds and Regeneron Pharmaceuticals, you can compare the effects of market volatilities on Lixte Biotech 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 Lixte Biotech with a short position of Regeneron Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lixte Biotech and Regeneron Pharmaceuticals.

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Can any of the company-specific risk be diversified away by investing in both Lixte Biotech 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 Lixte Biotech and Regeneron Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.

Diversification Opportunities for Lixte Biotech and Regeneron Pharmaceuticals

-0.82
  Correlation Coefficient
Lixte Biotech Hlds
Regeneron Pharmaceuticals

Pay attention - limited upside

The 3 months correlation between Lixte and Regeneron is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Lixte Biotech Hlds and Regeneron Pharmaceuticals in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals and Lixte Biotech 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 Lixte Biotech Hlds 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 Lixte Biotech i.e., Lixte Biotech and Regeneron Pharmaceuticals go up and down completely randomly.

Pair Corralation between Lixte Biotech and Regeneron Pharmaceuticals

Given the investment horizon of 90 days Lixte Biotech Hlds is expected to under-perform the Regeneron Pharmaceuticals. In addition to that, Lixte Biotech is 2.78 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 -0.09 per unit of volatility. If you would invest  66,329  in Regeneron Pharmaceuticals on June 28, 2021 and sell it today you would lose (1,623)  from holding Regeneron Pharmaceuticals or give up 2.45% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Lixte Biotech Hlds  vs.  Regeneron Pharmaceuticals

 Performance (%) 
      Timeline 
Lixte Biotech Hlds 
 Lixte Performance
0 of 100
Over the last 90 days Lixte Biotech Hlds has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in October 2021. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Lixte Price Channel

Regeneron Pharmaceuticals 
 Regeneron Performance
15 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Regeneron Pharmaceuticals are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady technical and fundamental indicators, Regeneron Pharmaceuticals disclosed solid returns over the last few months and may actually be approaching a breakup point.

Regeneron Price Channel

Lixte Biotech and Regeneron Pharmaceuticals Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Lixte Biotech and Regeneron Pharmaceuticals

The main advantage of trading using opposite Lixte Biotech and Regeneron Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lixte Biotech 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.
The idea behind Lixte Biotech Hlds and Regeneron Pharmaceuticals pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

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