Correlation Between CVW CleanTech and Regeneron Pharmaceuticals

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

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

Diversification Opportunities for CVW CleanTech and Regeneron Pharmaceuticals

0.29

Correlation Coefficient

CVW CleanTech  Regeneron Pharmaceuticals

Modest diversification

The 3 months correlation between CVW and Regeneron is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding CVW CleanTech and Regeneron Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals and CVW CleanTech 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 CVW CleanTech 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 CVW CleanTech i.e., CVW CleanTech and Regeneron Pharmaceuticals go up and down completely randomly.

Pair Corralation between CVW CleanTech and Regeneron Pharmaceuticals

Assuming the 90 days horizon CVW CleanTech is expected to under-perform the Regeneron Pharmaceuticals. But the otc stock apears to be less risky and, when comparing its historical volatility, CVW CleanTech is 1.23 times less risky than Regeneron Pharmaceuticals. The otc stock trades about -0.05 of its potential returns per unit of risk. The Regeneron Pharmaceuticals is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  55,770  in Regeneron Pharmaceuticals on May 6, 2025 and sell it today you would earn a total of  1,384  from holding Regeneron Pharmaceuticals or generate 2.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

CVW CleanTech  vs.  Regeneron Pharmaceuticals

CVW CleanTech

Risk-Adjusted Performance

Very Weak

Over the last 90 days CVW CleanTech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Regeneron Pharmaceuticals

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Regeneron Pharmaceuticals are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. 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 CVW CleanTech and Regeneron Pharmaceuticals

The main advantage of trading using opposite CVW CleanTech and Regeneron Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVW CleanTech 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 CVW CleanTech 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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.