Correlation Between Fonar and Repligen
Can any of the company-specific risk be diversified away by investing in both Fonar 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 Fonar and Repligen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fonar and Repligen, you can compare the effects of market volatilities on Fonar 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 Fonar with a short position of Repligen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fonar and Repligen.
Diversification Opportunities for Fonar and Repligen
Very weak diversification
The 3 months correlation between Fonar and Repligen is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Fonar and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen and Fonar 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 Fonar 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 Fonar i.e., Fonar and Repligen go up and down completely randomly.
Pair Corralation between Fonar and Repligen
Given the investment horizon of 90 days Fonar is expected to generate 3.84 times less return on investment than Repligen. But when comparing it to its historical volatility, Fonar is 1.43 times less risky than Repligen. It trades about 0.0 of its potential returns per unit of risk. Repligen is currently generating about 0.01 of returns per unit of risk over similar time horizon. 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fonar vs. Repligen
Performance |
| Timeline |
| Fonar |
| Repligen |
Fonar and Repligen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fonar and Repligen
The main advantage of trading using opposite Fonar and Repligen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fonar 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.| Fonar vs. Burning Rock Biotech | Fonar vs. Sera Prognostics | Fonar vs. Exagen Inc | Fonar vs. Castle Biosciences |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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