Correlation Between Carl Zeiss and Repligen
Can any of the company-specific risk be diversified away by investing in both Carl Zeiss 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 Carl Zeiss and Repligen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carl Zeiss Meditec and Repligen, you can compare the effects of market volatilities on Carl Zeiss 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 Carl Zeiss with a short position of Repligen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carl Zeiss and Repligen.
Diversification Opportunities for Carl Zeiss and Repligen
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carl and Repligen is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Carl Zeiss Meditec and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen and Carl Zeiss 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 Carl Zeiss Meditec 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 Carl Zeiss i.e., Carl Zeiss and Repligen go up and down completely randomly.
Pair Corralation between Carl Zeiss and Repligen
Assuming the 90 days horizon Carl Zeiss Meditec is expected to under-perform the Repligen. But the pink sheet apears to be less risky and, when comparing its historical volatility, Carl Zeiss Meditec is 3.09 times less risky than Repligen. The pink sheet trades about -0.36 of its potential returns per unit of risk. The Repligen is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 13,721 in Repligen on August 28, 2024 and sell it today you would earn a total of 885.00 from holding Repligen or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Carl Zeiss Meditec vs. Repligen
Performance |
| Timeline |
| Carl Zeiss Meditec |
| Repligen |
Carl Zeiss and Repligen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carl Zeiss and Repligen
The main advantage of trading using opposite Carl Zeiss and Repligen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carl Zeiss 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.| Carl Zeiss vs. GlucoTrack | Carl Zeiss vs. Sharps Technology | Carl Zeiss vs. Utah Medical Products | Carl Zeiss vs. Innovative Eyewear |
| Repligen vs. Fonar | Repligen vs. Burning Rock Biotech | Repligen vs. Sera Prognostics | Repligen vs. Exagen Inc |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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