Correlation Between Regeneron Pharmaceuticals and NCR Voyix

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

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

Diversification Opportunities for Regeneron Pharmaceuticals and NCR Voyix

-0.61

Correlation Coefficient

Regeneron Pharmaceuticals  NCR Voyix

Excellent diversification

The 3 months correlation between Regeneron and NCR is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and NCR Voyix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NCR Voyix 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 NCR Voyix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NCR Voyix has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and NCR Voyix go up and down completely randomly.

Pair Corralation between Regeneron Pharmaceuticals and NCR Voyix

Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to generate 0.56 times more return on investment than NCR Voyix. However, Regeneron Pharmaceuticals is 1.77 times less risky than NCR Voyix. It trades about 0.01 of its potential returns per unit of risk. NCR Voyix is currently generating about 0.0 per unit of risk. If you would invest  72,200  in Regeneron Pharmaceuticals on October 11, 2024 and sell it today you would earn a total of  1,159  from holding Regeneron Pharmaceuticals or generate 1.61% return on investment over 90 days.

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

Regeneron Pharmaceuticals  vs.  NCR Voyix

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.

NCR Voyix

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in NCR Voyix are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, NCR Voyix is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Regeneron Pharmaceuticals and NCR Voyix

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

The idea behind Regeneron Pharmaceuticals and NCR Voyix 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.