Correlation Between Blade Air and Regeneron Pharmaceuticals

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

By analyzing existing cross correlation between Blade Air Mobility and Regeneron Pharmaceuticals, you can compare the effects of market volatilities on Blade Air 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 Blade Air with a short position of Regeneron Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blade Air and Regeneron Pharmaceuticals.

Diversification Opportunities for Blade Air and Regeneron Pharmaceuticals

0.38

Correlation Coefficient

Blade Air  Regeneron Pharmaceuticals

Weak diversification

The 3 months correlation between Blade and Regeneron is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Blade Air Mobility and Regeneron Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals and Blade Air 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 Blade Air Mobility 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 Blade Air i.e., Blade Air and Regeneron Pharmaceuticals go up and down completely randomly.

Pair Corralation between Blade Air and Regeneron Pharmaceuticals

Given the investment horizon of 90 days Blade Air Mobility is expected to under-perform the Regeneron Pharmaceuticals. In addition to that, Blade Air is 2.12 times more volatile than Regeneron Pharmaceuticals. It trades about -0.08 of its total potential returns per unit of risk. Regeneron Pharmaceuticals is currently generating about -0.04 per unit of volatility. If you would invest  70,734  in Regeneron Pharmaceuticals on December 19, 2024 and sell it today you would lose (4,238) from holding Regeneron Pharmaceuticals or give up 5.99% of portfolio value over 90 days.

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

Blade Air Mobility  vs.  Regeneron Pharmaceuticals

Blade Air Mobility

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blade Air Mobility has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

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 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.

Pair Trading with Blade Air and Regeneron Pharmaceuticals

The main advantage of trading using opposite Blade Air and Regeneron Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blade Air 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 Blade Air Mobility 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.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.