Correlation Between Capital Clean and Regeneron Pharmaceuticals

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

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

Diversification Opportunities for Capital Clean and Regeneron Pharmaceuticals

-0.13

Correlation Coefficient

Capital Clean  Regeneron Pharmaceuticals

Good diversification

The 3 months correlation between Capital and Regeneron is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Capital Clean Energy and Regeneron Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals and Capital Clean 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 Capital Clean Energy 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 Capital Clean i.e., Capital Clean and Regeneron Pharmaceuticals go up and down completely randomly.

Pair Corralation between Capital Clean and Regeneron Pharmaceuticals

Given the investment horizon of 90 days Capital Clean Energy is expected to generate 0.73 times more return on investment than Regeneron Pharmaceuticals. However, Capital Clean Energy is 1.37 times less risky than Regeneron Pharmaceuticals. It trades about 0.09 of its potential returns per unit of risk. Regeneron Pharmaceuticals is currently generating about -0.02 per unit of risk. If you would invest  2,001  in Capital Clean Energy on May 5, 2025 and sell it today you would earn a total of  235.00  from holding Capital Clean Energy or generate 11.74% return on investment over 90 days.

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

Capital Clean Energy  vs.  Regeneron Pharmaceuticals

Capital Clean Energy

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Capital Clean Energy are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Capital Clean exhibited solid returns over the last few months and may actually be approaching a breakup point.

Regeneron Pharmaceuticals

Risk-Adjusted Performance

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 very healthy technical and fundamental indicators, Regeneron Pharmaceuticals is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Capital Clean and Regeneron Pharmaceuticals

The main advantage of trading using opposite Capital Clean and Regeneron Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Clean 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 Capital Clean Energy 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.