Correlation Between Hologic and Repligen
Can any of the company-specific risk be diversified away by investing in both Hologic 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 Hologic and Repligen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hologic and Repligen, you can compare the effects of market volatilities on Hologic 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 Hologic with a short position of Repligen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hologic and Repligen.
Diversification Opportunities for Hologic and Repligen
Excellent diversification
The 3 months correlation between Hologic and Repligen is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hologic and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen and Hologic 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 Hologic 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 Hologic i.e., Hologic and Repligen go up and down completely randomly.
Pair Corralation between Hologic and Repligen
Given the investment horizon of 90 days Hologic is expected to under-perform the Repligen. But the stock apears to be less risky and, when comparing its historical volatility, Hologic is 1.59 times less risky than Repligen. The stock trades about -0.19 of its potential returns per unit of risk. The Repligen is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 14,565 in Repligen on October 22, 2024 and sell it today you would earn a total of 1,486 from holding Repligen or generate 10.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hologic vs. Repligen
Performance |
| Timeline |
| Hologic |
| Repligen |
Hologic and Repligen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hologic and Repligen
The main advantage of trading using opposite Hologic and Repligen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hologic 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.| Hologic vs. Haemonetics | Hologic vs. ICU Medical | Hologic vs. Envista Holdings Corp | Hologic vs. The Cooper Companies, |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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