378.51 +0.55 (+0.15%) Buy

REGN continues it's uptrend, although on a weaker note

13 min read

REGENERON PHARMACEUTICALS INC managed to outperform the broader market on Thursday. It surged by +0.15% to close at 378.51. On a day when the overall market breadth was 35%, it closed higher than 13% of the market. In comparison, the benchmark SP500 index closed today at -0.0002%.

[Themes containing REGN]

Buy-and-Hold investors in REGN experienced a maximum drawdown of -17.29% over the last three months. It delivered -3.48% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.


REGN has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 6 Jan, 2016 to 10 May, 2018. Over the last 2 years 11 months and 9 days, REGN underperformed the SP500 index on 53% days.

REGN returned losses on 54% days in the last three months. During this time, it delivered on average -0.03% per day. It delivered it's worst daily return of -7.7%, during this period, on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 7 losing days, which started on 18 Oct, 2018 and ended on 26 Oct, 2018. This bearish trend lost -16.81% of investor capital.

The last 12 months saw REGN's investors making profits in 6 months and incurring losses in 6 months. REGN was less consistent in delivering monthly returs than SP500 index. REGN significantly outperformed SP500 index in Jun 2018, when it returned +14.87% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. REGN had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.

I made my money the old-fashioned way. I was very nice to a wealthy relative right before he died.
-- Malcolm Forbes

REGN is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in REGN's volatility from 26 Sep, 2018 to 30 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that REGN has significant negative skewness in it's return distribution. This indicates that REGN is very risky for short-term investment and can significantly underperform for long durations.

Investors trading in REGN derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.

REGN has more chance of extreme outcomes than the SP500 index. Therefore, REGN must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than REGN.

On a general note (since you are interested in REGN), two instruments that have been extremely volatile in recent times are OPNT and ICPT. Investors in these instruments should consider reducing their exposure (to OPNT and ICPT) and diversifying their portfolios.

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