Correlation Between Regeneron Pharmaceuticals and Ryanair Holdings

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

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

Diversification Opportunities for Regeneron Pharmaceuticals and Ryanair Holdings

-0.02

Correlation Coefficient

Regeneron Pharmaceuticals  Ryanair Holdings

Good diversification

The 3 months correlation between Regeneron and Ryanair is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Ryanair Holdings PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ryanair Holdings PLC 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 Ryanair Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ryanair Holdings PLC has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Ryanair Holdings go up and down completely randomly.

Pair Corralation between Regeneron Pharmaceuticals and Ryanair Holdings

Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to under-perform the Ryanair Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Regeneron Pharmaceuticals is 1.05 times less risky than Ryanair Holdings. The stock trades about -0.38 of its potential returns per unit of risk. The Ryanair Holdings PLC is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  4,535  in Ryanair Holdings PLC on September 23, 2024 and sell it today you would lose (65.00) from holding Ryanair Holdings PLC or give up 1.43% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Regeneron Pharmaceuticals  vs.  Ryanair Holdings PLC

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 unsteady performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Ryanair Holdings PLC

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Regeneron Pharmaceuticals and Ryanair Holdings

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

The idea behind Regeneron Pharmaceuticals and Ryanair Holdings PLC 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.