Correlation Between Regeneron Pharmaceuticals and Cosan

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

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

Diversification Opportunities for Regeneron Pharmaceuticals and Cosan

0.0

Correlation Coefficient

Regeneron Pharmaceuticals  Cosan

Pay attention - limited upside

The 3 months correlation between Regeneron and Cosan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Cosan Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosan Limited 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 Cosan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosan Limited has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Cosan go up and down completely randomly.

Pair Corralation between Regeneron Pharmaceuticals and Cosan

If you would invest (100.00) in Cosan Limited on February 2, 2024 and sell it today you would earn a total of  100.00  from holding Cosan Limited 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.  Cosan Limited

Regeneron Pharmaceuticals

Risk-Adjusted Performance

0 of 100

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 recent stock price disarray, may contribute to short-term losses for the investors.

Cosan Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cosan Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Cosan is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Regeneron Pharmaceuticals and Cosan

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

The idea behind Regeneron Pharmaceuticals and Cosan Limited 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.