Correlation Between Regeneron Pharmaceuticals and Micromobility

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

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

Diversification Opportunities for Regeneron Pharmaceuticals and Micromobility

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Correlation Coefficient

Regeneron Pharmaceuticals  Micromobility

Pay attention - limited upside

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

Pair Corralation between Regeneron Pharmaceuticals and Micromobility

Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to generate 0.11 times more return on investment than Micromobility. However, Regeneron Pharmaceuticals is 9.32 times less risky than Micromobility. It trades about 0.01 of its potential returns per unit of risk. Micromobility is currently generating about -0.01 per unit of risk. If you would invest  71,557  in Regeneron Pharmaceuticals on October 10, 2024 and sell it today you would earn a total of  1,473  from holding Regeneron Pharmaceuticals or generate 2.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	25.86%
Values	Daily Returns

Regeneron Pharmaceuticals  vs.  Micromobility

Regeneron Pharmaceuticals

Risk-Adjusted Performance

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

Micromobility

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Micromobility has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable primary indicators, Micromobility is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Regeneron Pharmaceuticals and Micromobility

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

The idea behind Regeneron Pharmaceuticals and Micromobility 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.