Correlation Between Regeneron Pharmaceuticals and Millennium Group

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

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

Diversification Opportunities for Regeneron Pharmaceuticals and Millennium Group

0.1

Correlation Coefficient

Regeneron Pharmaceuticals  Millennium Group

Average diversification

The 3 months correlation between Regeneron and Millennium is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Millennium Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Millennium Group Int 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 Millennium Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Millennium Group Int has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Millennium Group go up and down completely randomly.

Pair Corralation between Regeneron Pharmaceuticals and Millennium Group

Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to generate 335.78 times less return on investment than Millennium Group. But when comparing it to its historical volatility, Regeneron Pharmaceuticals is 8.65 times less risky than Millennium Group. It trades about 0.0 of its potential returns per unit of risk. Millennium Group International is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  321.00  in Millennium Group International on October 14, 2024 and sell it today you would lose (164.00) from holding Millennium Group International or give up 51.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	89.92%
Values	Daily Returns

Regeneron Pharmaceuticals  vs.  Millennium Group International

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 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.

Millennium Group Int

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Millennium Group International are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Millennium Group demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Regeneron Pharmaceuticals and Millennium Group

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

The idea behind Regeneron Pharmaceuticals and Millennium Group International 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.