Correlation Between Nokia Ab and Regeneron Pharmaceuticals

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

Diversification Opportunities for Nokia Ab and Regeneron Pharmaceuticals

-0.39
  Correlation Coefficient

Very good diversification

The 3 months correlation between Nokia and Regeneron is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Nokia Ab Oy and Regeneron Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals and Nokia Ab 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 Nokia Ab Oy 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 Nokia Ab i.e., Nokia Ab and Regeneron Pharmaceuticals go up and down completely randomly.

Pair Corralation between Nokia Ab and Regeneron Pharmaceuticals

Assuming the 90 days horizon Nokia Ab Oy is expected to generate 1.77 times more return on investment than Regeneron Pharmaceuticals. However, Nokia Ab is 1.77 times more volatile than Regeneron Pharmaceuticals. It trades about 0.17 of its potential returns per unit of risk. Regeneron Pharmaceuticals is currently generating about -0.11 per unit of risk. If you would invest  437.00  in Nokia Ab Oy on August 31, 2022 and sell it today you would earn a total of  32.00  from holding Nokia Ab Oy or generate 7.32% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Nokia Ab Oy  vs.  Regeneron Pharmaceuticals

 Performance (%) 
       Timeline  
Nokia Ab Oy 
Nokia Performance
0 of 100
Over the last 90 days Nokia Ab Oy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, Nokia Ab is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Nokia Price Channel

Regeneron Pharmaceuticals 
Regeneron Performance
10 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Regeneron Pharmaceuticals are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal 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

Nokia Ab and Regeneron Pharmaceuticals Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Nokia Ab and Regeneron Pharmaceuticals

The main advantage of trading using opposite Nokia Ab and Regeneron Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nokia Ab 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.
Nokia Ab vs. Cisco Systems
Nokia Ab vs. Hewlett Packard Enterprise
Nokia Ab vs. Boeing Company
The idea behind Nokia Ab Oy 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.
Regeneron Pharmaceuticals vs. Abbvie Inc
Regeneron Pharmaceuticals vs. Abbott Laboratories
Regeneron Pharmaceuticals vs. Alkermes Plc
Regeneron Pharmaceuticals vs. Amgen Inc
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Other Complementary Tools

Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go