Correlation Between ICU Medical and Repligen
Can any of the company-specific risk be diversified away by investing in both ICU Medical 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 ICU Medical and Repligen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICU Medical and Repligen, you can compare the effects of market volatilities on ICU Medical 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 ICU Medical with a short position of Repligen. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICU Medical and Repligen.
Diversification Opportunities for ICU Medical and Repligen
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ICU and Repligen is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding ICU Medical and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen 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 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 ICU Medical i.e., ICU Medical and Repligen go up and down completely randomly.
Pair Corralation between ICU Medical and Repligen
Given the investment horizon of 90 days ICU Medical is expected to generate 1.65 times less return on investment than Repligen. In addition to that, ICU Medical is 1.08 times more volatile than Repligen. It trades about 0.18 of its total potential returns per unit of risk. Repligen is currently generating about 0.31 per unit of volatility. 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICU Medical vs. Repligen
Performance |
| Timeline |
| ICU Medical |
| Repligen |
ICU Medical and Repligen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICU Medical and Repligen
The main advantage of trading using opposite ICU Medical and Repligen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICU Medical 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.| ICU Medical vs. Merit Medical Systems | ICU Medical vs. The Cooper Companies, | ICU Medical vs. AngioDynamics | ICU Medical vs. AptarGroup |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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