Correlation Between Regeneron Pharmaceuticals and Apogee Therapeutics,

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

By analyzing existing cross correlation between Regeneron Pharmaceuticals and Apogee Therapeutics, Common, you can compare the effects of market volatilities on Regeneron Pharmaceuticals and Apogee Therapeutics, 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 Apogee Therapeutics,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and Apogee Therapeutics,.

Diversification Opportunities for Regeneron Pharmaceuticals and Apogee Therapeutics,

0.28

Correlation Coefficient

Regeneron Pharmaceuticals  Apogee Therapeutics,

Modest diversification

The 3 months correlation between Regeneron and Apogee is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Apogee Therapeutics, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Therapeutics, 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 Apogee Therapeutics,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apogee Therapeutics, has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Apogee Therapeutics, go up and down completely randomly.

Pair Corralation between Regeneron Pharmaceuticals and Apogee Therapeutics,

Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to under-perform the Apogee Therapeutics,. But the stock apears to be less risky and, when comparing its historical volatility, Regeneron Pharmaceuticals is 2.12 times less risky than Apogee Therapeutics,. The stock trades about -0.07 of its potential returns per unit of risk. The Apogee Therapeutics, Common is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  4,464  in Apogee Therapeutics, Common on December 30, 2024 and sell it today you would lose (492.00) from holding Apogee Therapeutics, Common or give up 11.02% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Regeneron Pharmaceuticals  vs.  Apogee Therapeutics, Common

Regeneron Pharmaceuticals

Risk-Adjusted Performance

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 latest weak performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Apogee Therapeutics,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apogee Therapeutics, Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Apogee Therapeutics, is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Regeneron Pharmaceuticals and Apogee Therapeutics,

The main advantage of trading using opposite Regeneron Pharmaceuticals and Apogee Therapeutics, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals position performs unexpectedly, Apogee Therapeutics, 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 Apogee Therapeutics, will offset losses from the drop in Apogee Therapeutics,'s long position.

The idea behind Regeneron Pharmaceuticals and Apogee Therapeutics, Common 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.

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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.