Correlation Between American Funds and Replimune
Can any of the company-specific risk be diversified away by investing in both American Funds and Replimune 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 American Funds and Replimune into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Funds Fundamental and Replimune Group, you can compare the effects of market volatilities on American Funds and Replimune 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 American Funds with a short position of Replimune. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Replimune.
Diversification Opportunities for American Funds and Replimune
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between American and Replimune is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Fundamental and Replimune Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Replimune Group and American Funds 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 American Funds Fundamental are associated (or correlated) with Replimune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Replimune Group has no effect on the direction of American Funds i.e., American Funds and Replimune go up and down completely randomly.
Pair Corralation between American Funds and Replimune
Assuming the 90 days horizon American Funds is expected to generate 3.33 times less return on investment than Replimune. But when comparing it to its historical volatility, American Funds Fundamental is 5.37 times less risky than Replimune. It trades about 0.2 of its potential returns per unit of risk. Replimune Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,256 in Replimune Group on November 3, 2024 and sell it today you would earn a total of 142.00 from holding Replimune Group or generate 11.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Funds Fundamental vs. Replimune Group
Performance |
| Timeline |
| American Funds Funda |
| Replimune Group |
American Funds and Replimune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and Replimune
The main advantage of trading using opposite American Funds and Replimune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds position performs unexpectedly, Replimune 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 Replimune will offset losses from the drop in Replimune's long position.| American Funds vs. World Energy Fund | American Funds vs. Energy Services Fund | American Funds vs. Alpsalerian Energy Infrastructure | American Funds vs. Icon Natural Resources |
| Replimune vs. Nuvalent | Replimune vs. Ventyx Biosciences | Replimune vs. Ascendis Pharma AS | Replimune vs. United Therapeutics |
Check out your portfolio center.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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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