Correlation Between ICU Medical and Repro Med
Can any of the company-specific risk be diversified away by investing in both ICU Medical and Repro Med 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 ICU Medical and Repro Med into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICU Medical and Repro Med Systems, you can compare the effects of market volatilities on ICU Medical and Repro Med 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 ICU Medical with a short position of Repro Med. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICU Medical and Repro Med.
Diversification Opportunities for ICU Medical and Repro Med
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ICU and Repro is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding ICU Medical and Repro Med Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repro Med Systems and ICU Medical 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 ICU Medical are associated (or correlated) with Repro Med. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repro Med Systems has no effect on the direction of ICU Medical i.e., ICU Medical and Repro Med go up and down completely randomly.
Pair Corralation between ICU Medical and Repro Med
Given the investment horizon of 90 days ICU Medical is expected to under-perform the Repro Med. But the stock apears to be less risky and, when comparing its historical volatility, ICU Medical is 3.29 times less risky than Repro Med. The stock trades about -0.11 of its potential returns per unit of risk. The Repro Med Systems is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 258.00 in Repro Med Systems on August 28, 2024 and sell it today you would earn a total of 108.00 from holding Repro Med Systems or generate 41.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICU Medical vs. Repro Med Systems
Performance |
| Timeline |
| ICU Medical |
| Repro Med Systems |
ICU Medical and Repro Med Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICU Medical and Repro Med
The main advantage of trading using opposite ICU Medical and Repro Med positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICU Medical position performs unexpectedly, Repro Med 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 Repro Med will offset losses from the drop in Repro Med's long position.| ICU Medical vs. Merit Medical Systems | ICU Medical vs. The Cooper Companies, | ICU Medical vs. AngioDynamics | ICU Medical vs. AptarGroup |
| Repro Med vs. Precision Optics, | Repro Med vs. InfuSystems Holdings | Repro Med vs. Utah Medical Products | Repro Med vs. Milestone Scientific |
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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