Correlation Between Burning Rock and Repligen
Can any of the company-specific risk be diversified away by investing in both Burning Rock and Repligen 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 Burning Rock and Repligen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burning Rock Biotech and Repligen, you can compare the effects of market volatilities on Burning Rock and Repligen 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 Burning Rock with a short position of Repligen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burning Rock and Repligen.
Diversification Opportunities for Burning Rock and Repligen
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Burning and Repligen is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Burning Rock Biotech and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen and Burning Rock 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 Burning Rock Biotech are associated (or correlated) with Repligen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repligen has no effect on the direction of Burning Rock i.e., Burning Rock and Repligen go up and down completely randomly.
Pair Corralation between Burning Rock and Repligen
Considering the 90-day investment horizon Burning Rock Biotech is expected to under-perform the Repligen. In addition to that, Burning Rock is 1.71 times more volatile than Repligen. It trades about -0.04 of its total potential returns per unit of risk. Repligen is currently generating about 0.01 per unit of volatility. If you would invest 16,332 in Repligen on August 30, 2024 and sell it today you would lose (1,333) from holding Repligen or give up 8.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Burning Rock Biotech vs. Repligen
Performance |
| Timeline |
| Burning Rock Biotech |
| Repligen |
Burning Rock and Repligen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burning Rock and Repligen
The main advantage of trading using opposite Burning Rock and Repligen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burning Rock position performs unexpectedly, Repligen 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 Repligen will offset losses from the drop in Repligen's long position.| Burning Rock vs. Fonar | Burning Rock vs. Sera Prognostics | Burning Rock vs. Neuronetics | Burning Rock vs. DarioHealth Corp |
| Repligen vs. Intuitive Surgical | Repligen vs. ResMed Inc | Repligen vs. Merit Medical Systems | Repligen vs. ICU Medical |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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