Correlation Between Trinity Biotech and Regeneron Pharmaceuticals

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Trinity 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 Trinity Biotech and Regeneron Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trinity Biotech plc and Regeneron Pharmaceuticals, you can compare the effects of market volatilities on Trinity 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 Trinity Biotech with a short position of Regeneron Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trinity Biotech and Regeneron Pharmaceuticals.

Diversification Opportunities for Trinity Biotech and Regeneron Pharmaceuticals

0.26
  Correlation Coefficient

Modest diversification

The 3 months correlation between Trinity and Regeneron is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Trinity Biotech plc and Regeneron Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals and Trinity 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 Trinity Biotech plc 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 Trinity Biotech i.e., Trinity Biotech and Regeneron Pharmaceuticals go up and down completely randomly.

Pair Corralation between Trinity Biotech and Regeneron Pharmaceuticals

Given the investment horizon of 90 days Trinity Biotech plc is expected to under-perform the Regeneron Pharmaceuticals. In addition to that, Trinity Biotech is 3.1 times more volatile than Regeneron Pharmaceuticals. It trades about -0.24 of its total potential returns per unit of risk. Regeneron Pharmaceuticals is currently generating about -0.32 per unit of volatility. If you would invest  96,109  in Regeneron Pharmaceuticals on January 25, 2024 and sell it today you would lose (5,455) from holding Regeneron Pharmaceuticals or give up 5.68% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Trinity Biotech plc  vs.  Regeneron Pharmaceuticals

 Performance 
       Timeline  
Trinity Biotech plc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Trinity Biotech plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward indicators, Trinity Biotech is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
Regeneron Pharmaceuticals 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Regeneron Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Regeneron Pharmaceuticals is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Trinity Biotech and Regeneron Pharmaceuticals Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Trinity Biotech and Regeneron Pharmaceuticals

The main advantage of trading using opposite Trinity Biotech and Regeneron Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trinity 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 Trinity Biotech plc 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 the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

Other Complementary Tools

Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.