Correlation Between Regeneron Pharmaceuticals and Mind Medicine

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

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

Diversification Opportunities for Regeneron Pharmaceuticals and Mind Medicine

-0.78

Correlation Coefficient

Regeneron Pharmaceuticals  Mind Medicine

Pay attention - limited upside

The 3 months correlation between Regeneron and Mind is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Mind Medicine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mind Medicine 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 Mind Medicine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mind Medicine has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Mind Medicine go up and down completely randomly.

Pair Corralation between Regeneron Pharmaceuticals and Mind Medicine

Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to generate 0.53 times more return on investment than Mind Medicine. However, Regeneron Pharmaceuticals is 1.9 times less risky than Mind Medicine. It trades about -0.14 of its potential returns per unit of risk. Mind Medicine is currently generating about -0.11 per unit of risk. If you would invest  75,303  in Regeneron Pharmaceuticals on September 27, 2024 and sell it today you would lose (3,895) from holding Regeneron Pharmaceuticals or give up 5.17% of portfolio value over 90 days.

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

Regeneron Pharmaceuticals  vs.  Mind Medicine

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 January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Mind Medicine

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mind Medicine are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady primary indicators, Mind Medicine exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Regeneron Pharmaceuticals and Mind Medicine

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

The idea behind Regeneron Pharmaceuticals and Mind Medicine 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.

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 the 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.