Correlation Between Regeneron Pharmaceuticals and Rumble

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

Diversification Opportunities for Regeneron Pharmaceuticals and Rumble

-0.7
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Regeneron and Rumble is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Rumble Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rumble Inc 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 Rumble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rumble Inc has no effect on the direction of Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Rumble go up and down completely randomly.

Pair Corralation between Regeneron Pharmaceuticals and Rumble

Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to under-perform the Rumble. But the stock apears to be less risky and, when comparing its historical volatility, Regeneron Pharmaceuticals is 3.11 times less risky than Rumble. The stock trades about -0.36 of its potential returns per unit of risk. The Rumble Inc is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  546.00  in Rumble Inc on September 12, 2024 and sell it today you would earn a total of  244.00  from holding Rumble Inc or generate 44.69% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Regeneron Pharmaceuticals  vs.  Rumble Inc

 Performance 
       Timeline  
Regeneron Pharmaceuticals 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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 inconsistent 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.
Rumble Inc 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Rumble Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Rumble displayed solid returns over the last few months and may actually be approaching a breakup point.

Regeneron Pharmaceuticals and Rumble Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Regeneron Pharmaceuticals and Rumble

The main advantage of trading using opposite Regeneron Pharmaceuticals and Rumble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals position performs unexpectedly, Rumble 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 Rumble will offset losses from the drop in Rumble's long position.
The idea behind Regeneron Pharmaceuticals and Rumble Inc 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.

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