Correlation Between Regeneron Pharmaceuticals and American Express

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

Diversification Opportunities for Regeneron Pharmaceuticals and American Express

0.82
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Regeneron and American is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and American Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express 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 American Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Express has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and American Express go up and down completely randomly.

Pair Corralation between Regeneron Pharmaceuticals and American Express

Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to generate 11.6 times less return on investment than American Express. But when comparing it to its historical volatility, Regeneron Pharmaceuticals is 1.22 times less risky than American Express. It trades about 0.01 of its potential returns per unit of risk. American Express is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  9,127  in American Express on April 4, 2022 and sell it today you would earn a total of  4,913  from holding American Express or generate 53.83% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Regeneron Pharmaceuticals  vs.  American Express

 Performance (%) 
      Timeline 
Regeneron Pharmaceuticals 
Regeneron Performance
0 of 100
Over the last 90 days Regeneron Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in August 2022. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Regeneron Price Channel

American Express 
American Performance
0 of 100
Over the last 90 days American Express 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 basic indicators remain very healthy which may send shares a bit higher in August 2022. The recent disarray may also be a sign of long period up-swing for the firm insiders.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0148
Payout Ratio
0.19
Last Split Factor
10000:8753
Forward Annual Dividend Rate
2.08
Dividend Date
2022-08-10
Ex Dividend Date
2022-06-30
Last Split Date
2005-10-03

American Price Channel

Regeneron Pharmaceuticals and American Express Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Regeneron Pharmaceuticals and American Express

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

American Express

Pair trading matchups for American Express

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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

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