Correlation Between TruBridge and Regeneron Pharmaceuticals

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

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

Diversification Opportunities for TruBridge and Regeneron Pharmaceuticals

-0.83

Correlation Coefficient

TruBridge  Regeneron Pharmaceuticals

Pay attention - limited upside

The 3 months correlation between TruBridge and Regeneron is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding TruBridge and Regeneron Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals and TruBridge 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 TruBridge are associated (or correlated) with Regeneron Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regeneron Pharmaceuticals has no effect on the direction of TruBridge i.e., TruBridge and Regeneron Pharmaceuticals go up and down completely randomly.

Pair Corralation between TruBridge and Regeneron Pharmaceuticals

Given the investment horizon of 90 days TruBridge is expected to generate 1.32 times more return on investment than Regeneron Pharmaceuticals. However, TruBridge is 1.32 times more volatile than Regeneron Pharmaceuticals. It trades about 0.3 of its potential returns per unit of risk. Regeneron Pharmaceuticals is currently generating about -0.36 per unit of risk. If you would invest  1,195  in TruBridge on September 12, 2024 and sell it today you would earn a total of  614.00  from holding TruBridge or generate 51.38% return on investment over 90 days.

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

TruBridge  vs.  Regeneron Pharmaceuticals

TruBridge

Risk-Adjusted Performance

23 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in TruBridge are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, TruBridge reported solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with TruBridge and Regeneron Pharmaceuticals

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

The idea behind TruBridge and Regeneron Pharmaceuticals 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.