Correlation Between Moleculin Biotech and Regeneron Pharmaceuticals

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Can any of the company-specific risk be diversified away by investing in both Moleculin Biotech 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 Moleculin Biotech and Regeneron Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moleculin Biotech CS and Regeneron Pharmaceuticals, you can compare the effects of market volatilities on Moleculin Biotech 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 Moleculin Biotech with a short position of Regeneron Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moleculin Biotech and Regeneron Pharmaceuticals.

Diversification Opportunities for Moleculin Biotech and Regeneron Pharmaceuticals

-0.52
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Moleculin and Regeneron is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Moleculin Biotech CS and Regeneron Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals and Moleculin Biotech 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 Moleculin Biotech CS 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 Moleculin Biotech i.e., Moleculin Biotech and Regeneron Pharmaceuticals go up and down completely randomly.

Pair Corralation between Moleculin Biotech and Regeneron Pharmaceuticals

Given the investment horizon of 90 days Moleculin Biotech CS is expected to under-perform the Regeneron Pharmaceuticals. But the stock apears to be less risky and, when comparing its historical volatility, Moleculin Biotech CS is 1.62 times less risky than Regeneron Pharmaceuticals. The stock trades about -0.36 of its potential returns per unit of risk. The Regeneron Pharmaceuticals is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  59,277  in Regeneron Pharmaceuticals on June 29, 2022 and sell it today you would earn a total of  10,224  from holding Regeneron Pharmaceuticals or generate 17.25% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Moleculin Biotech CS  vs.  Regeneron Pharmaceuticals

 Performance (%) 
       Timeline  
Moleculin Biotech 
Moleculin Performance
0 of 100
Over the last 90 days Moleculin Biotech CS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in October 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Moleculin Price Channel

Regeneron Pharmaceuticals 
Regeneron Performance
7 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Regeneron Pharmaceuticals are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal technical and fundamental indicators, Regeneron Pharmaceuticals disclosed solid returns over the last few months and may actually be approaching a breakup point.

Regeneron Price Channel

Moleculin Biotech and Regeneron Pharmaceuticals Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Moleculin Biotech and Regeneron Pharmaceuticals

The main advantage of trading using opposite Moleculin Biotech and Regeneron Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moleculin Biotech 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.
Moleculin Biotech vs. Clearwater Paper Corp
The idea behind Moleculin Biotech CS 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.
Regeneron Pharmaceuticals vs. Clearwater Paper Corp
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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