Correlation Between Regeneron Pharmaceuticals and MUNRE

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

By analyzing existing cross correlation between Regeneron Pharmaceuticals and MUNRE 5875 23 MAY 42, you can compare the effects of market volatilities on Regeneron Pharmaceuticals and MUNRE 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 MUNRE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and MUNRE.

Diversification Opportunities for Regeneron Pharmaceuticals and MUNRE

-0.14

Correlation Coefficient

Regeneron Pharmaceuticals  MUNRE

Good diversification

The 3 months correlation between Regeneron and MUNRE is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and MUNRE 5875 23 MAY 42 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MUNRE 5875 23 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 MUNRE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MUNRE 5875 23 has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and MUNRE go up and down completely randomly.

Pair Corralation between Regeneron Pharmaceuticals and MUNRE

Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to under-perform the MUNRE. In addition to that, Regeneron Pharmaceuticals is 19.76 times more volatile than MUNRE 5875 23 MAY 42. It trades about -0.14 of its total potential returns per unit of risk. MUNRE 5875 23 MAY 42 is currently generating about -0.86 per unit of volatility. If you would invest  10,136  in MUNRE 5875 23 MAY 42 on October 26, 2024 and sell it today you would lose (36.00) from holding MUNRE 5875 23 MAY 42 or give up 0.36% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	21.05%
Values	Daily Returns

Regeneron Pharmaceuticals  vs.  MUNRE 5875 23 MAY 42

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.

MUNRE 5875 23

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in MUNRE 5875 23 MAY 42 are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, MUNRE may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Regeneron Pharmaceuticals and MUNRE

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

The idea behind Regeneron Pharmaceuticals and MUNRE 5875 23 MAY 42 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.