Correlation Between Blueprint Medicines and Regenxbio

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

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

Diversification Opportunities for Blueprint Medicines and Regenxbio

-0.27

Correlation Coefficient

Blueprint Medicines  Regenxbio

Very good diversification

The 3 months correlation between Blueprint and Regenxbio is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Blueprint Medicines Corp and Regenxbio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regenxbio and Blueprint Medicines 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 Blueprint Medicines Corp are associated (or correlated) with Regenxbio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regenxbio has no effect on the direction of Blueprint Medicines i.e., Blueprint Medicines and Regenxbio go up and down completely randomly.

Pair Corralation between Blueprint Medicines and Regenxbio

Given the investment horizon of 90 days Blueprint Medicines Corp is expected to generate 0.67 times more return on investment than Regenxbio. However, Blueprint Medicines Corp is 1.48 times less risky than Regenxbio. It trades about 0.13 of its potential returns per unit of risk. Regenxbio is currently generating about -0.02 per unit of risk. If you would invest  10,184  in Blueprint Medicines Corp on May 5, 2025 and sell it today you would earn a total of  2,762  from holding Blueprint Medicines Corp or generate 27.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	82.54%
Values	Daily Returns

Blueprint Medicines Corp  vs.  Regenxbio

Blueprint Medicines Corp

Risk-Adjusted Performance

OK

Over the last 90 days Blueprint Medicines Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather unfluctuating primary indicators, Blueprint Medicines exhibited solid returns over the last few months and may actually be approaching a breakup point.

Regenxbio

Risk-Adjusted Performance

Very Weak

Over the last 90 days Regenxbio has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Blueprint Medicines and Regenxbio

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

The idea behind Blueprint Medicines Corp and Regenxbio 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.