Correlation Between Coloplast and Repligen
Can any of the company-specific risk be diversified away by investing in both Coloplast 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 Coloplast and Repligen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coloplast A and Repligen, you can compare the effects of market volatilities on Coloplast 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 Coloplast with a short position of Repligen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coloplast and Repligen.
Diversification Opportunities for Coloplast and Repligen
Weak diversification
The 3 months correlation between Coloplast and Repligen is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Coloplast A and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen and Coloplast 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 Coloplast A 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 Coloplast i.e., Coloplast and Repligen go up and down completely randomly.
Pair Corralation between Coloplast and Repligen
Assuming the 90 days horizon Coloplast A is expected to generate 0.54 times more return on investment than Repligen. However, Coloplast A is 1.86 times less risky than Repligen. It trades about 0.02 of its potential returns per unit of risk. Repligen is currently generating about 0.01 per unit of risk. If you would invest 1,212 in Coloplast A on August 31, 2024 and sell it today you would earn a total of 53.00 from holding Coloplast A or generate 4.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coloplast A vs. Repligen
Performance |
| Timeline |
| Coloplast A |
| Repligen |
Coloplast and Repligen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coloplast and Repligen
The main advantage of trading using opposite Coloplast and Repligen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coloplast 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.| Coloplast vs. Straumann Holding AG | Coloplast vs. Hoya Corp | Coloplast vs. EssilorLuxottica Socit anonyme | Coloplast vs. Essilor International SA |
| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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